EIM: Discount Widens Back To A More Attractive Level

Eaton Vance Municipal Bond Fund (EIM) faces pressure from rising long-term rates and what should remain higher short-term rates, widening its discount to -6.7%. EIM's 6.16% distribution yield is attractive, but coverage remains below 100%, with recent improvement to 79% after prior Fed rate cuts, but likely to stabilize around this level for now. Recent discount widening and market volatility may present a more compelling entry point for long-term investors despite near-term headwinds.