The Invesco Value Municipal Income Trust is benefiting from Fed rate cuts, lowering borrowing costs and helping improve distribution coverage. IIM's discount has narrowed to trade near a premium, making it less attractive for value investors, but it is also a favorable rate environment for leveraged CEFs. Distribution coverage is improving, but will unlikely reach 100% NII without a cut; capita...
One of the only downsides to passive income from stocks and bonds is that the revenue generated from those investments is subject to federal and state income tax.
Invesco Value Municipal Income Trust offers diversified exposure to municipal bonds, providing a large portion of its distribution to be classified as federally tax-exempt distributions. The fund's discount to NAV has narrowed meaningfully due to the sizeable distribution increase since our last update, but that makes it less appealing for current consideration. The higher distribution resulted...
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