LEO: Tax-Free Yield And Measured Duration Exposure

BNY Mellon Strategic Municipals, Inc. is a closed-end fund primarily investing in investment-grade municipal tax-exempt debt with long-term maturity profiles. LEO's municipal bond fund offers an unsubsidized SEC yield of ~4.81%, which on a tax-equivalent basis equals ~8.13% for an investor in the highest tax bracket. The current elevated interest rate levels along with a higher term spread suggests some possibility of a medium-term mean reversion for the performances. The credit spreads however remain tighter.