DMB: Vulnerable To High Interest Rates

Cain Lee8.25K FollowersFollow5ShareSavePlay(11min)CommentsSummaryBNY Mellon Municipal Bond Infrastructure Fund is maintained at a Hold rating due to ongoing sensitivity to high-interest rates and aggressive leverage.DMB offers a 4.6% tax-advantaged yield, attractive for high-income investors seeking federally tax-exempt income, but lacks upside in equity bull markets.Heavy allocation to long-dated municipal revenue bonds and 35% leverage creates significant interest rate risk, suppressing NAV and share price.DMB trades at a 7% discount to NAV, but variable payouts and limited growth potential make it best suited for tax-focused, income-oriented investors. J Studios/DigitalVision via Getty Images Overview While market indices continue to pull back from their highs, it can be difficult to add capital to equities right now. However, there are plenty of income-focused funds out there that can serve as a hedgeThis article was written byCain Lee8.25K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.