| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 38.18 | 386 |
| Intrinsic value (DCF) | 4.45 | -43 |
| Graham-Dodd Method | 4.93 | -37 |
| Graham Formula | 65.56 | 735 |
Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) is a closed-end fixed income mutual fund managed by Legg Mason Partners Fund Advisor, LLC, with co-management by Western Asset Management Company. Specializing in U.S. municipal bonds, the fund focuses on investment-grade securities that provide tax-exempt income at the federal level. Its portfolio is constructed using intensive proprietary research and benchmarks against the Barclays Capital 1-15 Year Municipal Bond Index. With a market capitalization of approximately $105 million, SBI serves income-focused investors seeking tax-efficient returns. The fund, established in 1991, operates in the competitive asset management sector, catering to investors prioritizing municipal bond exposure. Its strategy emphasizes stability and income generation, making it relevant in today's low-yield environment.
Western Asset Intermediate Muni Fund Inc. (SBI) offers a niche investment opportunity for tax-conscious fixed-income investors. The fund's focus on investment-grade municipal bonds provides relative stability and federal tax-exempt income, appealing to high-net-worth individuals and retirees. However, its small market cap (~$105M) and low beta (0.44) suggest limited liquidity and muted sensitivity to broader market movements. While its net income ($7.8M) and EPS ($0.56) indicate profitability, the fund's reliance on municipal bond markets exposes it to interest rate risks and credit quality fluctuations. The dividend yield (~4.8% based on $0.504/share) is competitive but may lag higher-risk alternatives. Investors should weigh its tax advantages against potential interest rate sensitivity and sector concentration risks.
Western Asset Intermediate Muni Fund Inc. (SBI) competes in the specialized municipal bond fund segment, differentiating itself through Western Asset Management's credit research expertise and a focus on intermediate-term maturities (1-15 years). Its competitive edge lies in tax-efficient income generation, appealing to investors in higher tax brackets. However, its small size limits economies of scale compared to larger municipal bond funds. The fund's passive benchmarking approach contrasts with active municipal bond strategies, potentially limiting alpha generation. Its zero leverage (no debt) reduces risk but may cap returns versus leveraged peers. The fund's lack of cash reserves (reported $0 cash) suggests full investment, which could limit flexibility during market stress. While its expense ratio isn't disclosed, closed-end funds like SBI often face fee pressure from low-cost municipal bond ETFs. Its niche positioning helps avoid direct competition with broad fixed-income funds but confines its market opportunity.