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BUYING GBAB FOR IRA (NOT YOUR TAXABLE ACCOUNT)

February 24, 2017

Click here to see the Core Portfolio which lists all current positions.

Yesterday we mentioned that we are taking a gander at GBAB Guggenheim TAXABLE Municipal Managed Duration Trust…for a position in the IRA.

Keep in mind these are Taxable municipals, NOT the tax free muni’s that you see heavily advertised.

In actuality we have been looking at GBAB for years.  That just goes to show you how human emotions can affect investing decisions.  While we have been sitting on our ass, GBAB has fluctuated between $23 and $19…..all the while paying around 7%.  Right now we are looking at a $22.00 price.

If we had been paying attention we could have picked up GBAB at the lower price of $20.53 recently.

Guggenheim Taxable Municipal Managed Duration Trust, formerly Guggenheim Build America Bonds Managed Duration Trust, is a diversified closed-end management investment company. The Trust’s investment objective is to provide current income with a secondary objective of long-term capital appreciation. Under normal market conditions, the Trust will invest approximately 80% of its managed assets in taxable municipal securities, including Build America Bonds (BABs). Under normal market conditions, the Trust may invest approximately 20% of its managed assets in securities other than taxable municipal securities, including tax-exempt municipal securities, asset backed securities, senior loans and other income producing securities. It invests in a range of sectors, including power, school, university, transportation, water and sewer, hospital, investment grade corporates, city, county and preferred securities. Guggenheim Funds Investment Advisors, LLC serves as the advisor of the Trust.

Here is a detailed discussion on GBAB.

http://seekingalpha.com/article/4000147-need-income-check-taxable-munis-safe-yields-6-percent

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