Description

BLACKROCK VIRGINIA MUNI BOND (TICKER: BHV)

BlackRock Virginia Municipal Bond Trust is a closed end fund which invests in investment grade Virginia municipal bonds.  It has 31% leverage.  

It's information sheet is located at https://www2.blackrock.com/webcore/litService/search/getDocument.seam?contentId=37759&Source=SEARCH&Venue=PUB_IND

It pays a dividend which approxiates it's current yield of about 4.5%.  Duration is about 9 years.

In effect selling this at 123% of NAV is like selling muni bonds at 123% of par.  

Alternative investments are T Rowe Tax Free Fund 
http://www3.troweprice.com/fb2/fbkweb/performance.do?ticker=PRVAX

Nuveen Virginia Muni Fund
http://www.nuveen.com/Home/Documents/Default.aspx?fileId=28083

I do not advocate hedging it, but I suppose one could.

It's portfolio is below (source: Bloomberg).

DISCLAIMER:

The author of this posting and related persons or entities ("Author") may currently hold a short position in this security. Short Sales are extremely risky and expose the investor to a loss in excess of their investment.  Please consult your financial, legal and or tax advisers before making any investments.  The Author makes no representation that it will continue to hold positions in the securities of BHV.  In fact the Author is likely to buy or sell long or short securities of this issuer and makes no representation or undertaking that Author will inform Value Investors Club, the reader or anyone else prior to or after making such transactions.  Additionally, because the Author has these current positions the reader may assume that the Author is biased in favor of his investment view and may also be mistaken.  While the Author has tried to present facts it believes are accurate, the Author makes no representation as to the accuracy or completeness of any information contained in this note.  The reader agrees not to invest based on this note and to perform his or her own due diligence and research before taking a position in securities of this issuer.  READER AGREES TO HOLD AUTHOR HARMLESS AND HEREBY WAIVES ANY CAUSES OF ACTION AGAINST AUTHOR RELATED TO THE ABOVE NOTE.

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