BLACKROCK VA MUNICIPAL BOND BHV S
November 16, 2012 - 9:34pm EST by
unkown345
2012 2013
Price: 21.20 EPS $0.00 $0.00
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
TEV: 0 TEV/EBIT 0.0x 0.0x
Borrow Cost: NA

Sign up for free guest access to view investment idea with a 45 days delay.

  • Municipal bonds
  • Premium to NAV
  • Closed-end Fund
 

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).


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
JPM DRVRS-3188Z JPMTRN 1000 1.44M 3.841
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
PORTSMOUTH-A-REF POR 900 1.05M 2.785
ROANOKE EDA-CARILION ROADEV 795 894.86k 2.379
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
PORTSMOUTH-REF-D POR 500 574.55k 1.527
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
NORFOLK PKG-REF-B NORTRN 465 465.53k 1.238
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
JPM DRIVERS-4138Z JPM 250 305.98k 0.813
MOSAIC DIST CMNTY-A MOSDEV 250 278.84k 0.741
GUAM GOVT BUS-A GMSGEN 250 277.68k 0.738
GUAM GOVT-30-A GMSGEN 200 224.54k 0.597
WHITE OAK VLG SHOPS WHIDEV 175 187.78k 0.499
PENINSULA PORTS -C PENNUR 250 187.76k 0.499
VA RESOURCES-A-OBLIG VASGEN 150 172.57k 0.459
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

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.

Closed End Funs at a premium

I do not hold a position of employment, directorship, or consultancy with the issuer.
Neither I nor others I advise hold a material investment in the issuer's securities.

Catalyst

Limitations on deductibility of muni interest
Rights offerings (ala DNP, GUT, CRF, CLM)
Market wakes up (ala PHK)
Muni market or VA municipalities hit bumps in the road
 
    sort by   Expand   New

    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).


    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
    JPM DRVRS-3188Z JPMTRN 1000 1.44M 3.841
    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
    PORTSMOUTH-A-REF POR 900 1.05M 2.785
    ROANOKE EDA-CARILION ROADEV 795 894.86k 2.379
    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
    PORTSMOUTH-REF-D POR 500 574.55k 1.527
    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
    NORFOLK PKG-REF-B NORTRN 465 465.53k 1.238
    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
    JPM DRIVERS-4138Z JPM 250 305.98k 0.813
    MOSAIC DIST CMNTY-A MOSDEV 250 278.84k 0.741
    GUAM GOVT BUS-A GMSGEN 250 277.68k 0.738
    GUAM GOVT-30-A GMSGEN 200 224.54k 0.597
    WHITE OAK VLG SHOPS WHIDEV 175 187.78k 0.499
    PENINSULA PORTS -C PENNUR 250 187.76k 0.499
    VA RESOURCES-A-OBLIG VASGEN 150 172.57k 0.459
    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

    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.

    Closed End Funs at a premium

    I do not hold a position of employment, directorship, or consultancy with the issuer.
    Neither I nor others I advise hold a material investment in the issuer's securities.

    Catalyst

    Limitations on deductibility of muni interest
    Rights offerings (ala DNP, GUT, CRF, CLM)
    Market wakes up (ala PHK)
    Muni market or VA municipalities hit bumps in the road
     

    Messages


    SubjectRE: I gave this a 2
    Entry11/17/2012 08:04 PM
    Memberunkown345
    Everdeen,
     
    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.  
     
     
      Back to top