DMB: Vulnerable To High Interest Rates

BNY 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.