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IIM: Climbing To A Premium Helps Buoy Results But Underlying Issues Remain
Invesco Value Municipal Income Trust now trades at a premium, prompted partly by a declining NAV, making it less appealing for new investment. IIM's high 7.43% distribution yield is lacking coverage from net investment income, leading to destructive return of capital distributions. Rising risk-free rates and IIM's high leverage-adjusted duration (12.6 years) increase interest rate sensitivity and downside risk on top of the leverage and premium.
Seekingalpha | 1 week ago
