Summary
- Rising long-end rates are making some income investors nervous about the impact of growing deficits and inflationary dynamics on their portfolios.
- Short-duration high-yield municipal bonds provide an attractive combination of yield, historical drawdown dynamics and a muted sensitivity to rising rates.
- Within the sector we like NVHAX due to its modest leverage use, attractive yield and strong historical returns.
Seeking Alpha
Oct. 28, 2020