BNY Mellon Strategic Municipals offers ~4.81% tax-exempt yield, attractive for high-tax investors despite some duration risk.

BNY Mellon Strategic Municipals, Inc. is a closed-end fund investing mainly in investment-grade municipal bonds that are tax-exempt. It currently offers an unsubsidized SEC yield of about 4.81%, which translates to approximately 8.13% on a tax-equivalent basis for investors in the highest tax bracket. The fund uses leverage, increasing both the duration and volatility of returns, which means investors should be comfortable with some interest rate and credit risk. It is recommended as a buy for investors seeking tax-exempt income and willing to accept these risks, especially given the current elevated interest rates and tighter credit spreads that may impact medium-term performance.