|Shares Out. (in M):||2||P/E||0.0x||0.0x|
|Market Cap (in M):||33||P/FCF||0.0x||0.0x|
|Net Debt (in M):||11||EBIT||0||0|
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
Nuveen Virginia Muni Fund
I do not advocate hedging it, but I suppose one could.
It's portfolio is below (source: Bloomberg).
|VIRGINIA RES AUTH-SR||VASGEN||2000||2.32M||6.172|
|CLNH 7.2 11/15/14||CLNH||1500||1.66M||4.413|
|FAIRFAX REDEV & HSG||FAIDEV||1500||1.65M||4.386|
|HENRICO ECON UNREF-A||HENDEV||1440||1.45M||3.846|
|ISLE WIGHT CNTY IDA||ISLPOL||1300||1.36M||3.606|
|VA COLLEGE BLDG-WASHI||VACHGR||1000||1.30M||3.454|
|DANVILLE IDA REGL MED||DANMED||1000||1.29M||3.428|
|VA ST SMALL BUS-SR||VASDEV||1000||1.15M||3.045|
|MET WA DC||METAPT||1000||1.13M||3.006|
|VA CLG BLDG-A||VACHGR||1000||1.12M||2.982|
|VA HSG-B-RENTAL HSG||VASHSG||1000||1.11M||2.943|
|VA CLG BLDG AUTH||VACHGR||1000||1.11M||2.94|
|PR SALES TAX FIN-A-1||PRCGEN||1000||1.07M||2.838|
|VA ST PUB SCH AUTH-B||VASSCD||1000||1.05M||2.797|
|LOUISA DEV PCR||LOUPOL||1000||1.05M||2.792|
|DULLES TWN CTR DEV PJ||DULDEV||880||880.91k||2.342|
|VA ST HSG AUTH-A||VASHSG||750||825.70k||2.195|
|WINCHESTER IDA-E-VY H||WINDEV||650||728.21k||1.936|
|VA TRN ROLS-R-11983X||VASTRN||420||643.20k||1.71|
|FAIRFAX CNTY IDA||FAIDEV||500||640.95k||1.704|
|VA COLLEGE BLDG-WASHI||VACHGR||500||630.17k||1.675|
|RICHMOND MET AUTH-REF||RICTRN||500||583.30k||1.551|
|JPM CHASE PUTT/DRVRS||JPM||480||582.91k||1.55|
|VA ST PUB SCH AUTH||VASSCD||500||571.92k||1.52|
|VA PORT AUTH||VASTRN||500||569.33k||1.513|
|VIRGINIA SM BUS FIN||VASHGR||500||564.40k||1.5|
|ROANOKE DEV AUTH-UNRE||ROAMED||495||541.91k||1.441|
|VA ST HSG-RENTAL-D||VASHSG||500||529.71k||1.408|
|CHESTERFIELD DEV -A||CHFPOL||500||526.77k||1.4|
|MET WA DC ARPTS-SER A||METAPT||460||509.50k||1.354|
|VA PUB SCH AUTH||VASSCD||360||448.06k||1.191|
|MONTGOMERY CO EDA-VT||MONDEV||355||400.09k||1.064|
|MET WA DC ARPTS-SER A||METAPT||290||318.41k||0.846|
|MOSAIC DIST CMNTY-A||MOSDEV||250||278.84k||0.741|
|GUAM GOVT BUS-A||GMSGEN||250||277.68k||0.738|
|WHITE OAK VLG SHOPS||WHIDEV||175||187.78k||0.499|
|PENINSULA PORTS -C||PENNUR||250||187.76k||0.499|
|HENRICO ECON DEV-REF||HENDEV||145||143.28k||0.381|
|FFI Institutional Tax-Exempt||MLEXX||65431||65.43k||0.174|
|ROANOKE DEV AUTH-PRER||ROAMED||5||6.30k||0.017|
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.
|Subject||RE: I gave this a 2|
|Entry||11/17/2012 08:04 PM|
I am no lawyer, but..... since BHV is a registered fund, the 40 Act requires investments to be at market (see below
"The Investment Company Act of 1940 (“Investment Company Act”) generally requires registered investment companies (“funds”) to use market values to value portfolio securities for which market quotations are readily available."
And that is the case here. The columns of the holdings list market value and face amount of bonds. That could be clearer, but it is clear how they carry them.
On another note, I could have pointed out that effectively you are shorting at 125% of market value not face value. Many of these are already at a premium to face. While I could have, and perhaps some like you would have appreciated it, run yield to calls on each and every bond (e.g. their largest position VA RES AUT trade at 1.26% ytw) it seemed pretty intuitive to me that it was silly.
I probably should have pointed out, though it is referenced tangentially in the catalyst section, that most of the CEFs trading at a premium on the Bloomberg screenshot have done recent rights deals. CRF & CLM announced Friday. GUT is in process. DNP just did one.