BNY Mellon Strategic Municipals, Inc. (LEO)

BNY Mellon Strategic Municipals is a closed-end management investment company that trades on the New York Stock Exchange under the symbol LEO. Its objective is to provide investors with as high a level of current income exempt from federal income tax as is consistent with preserving capital. The fund invests primarily in municipal bonds issued by states, cities and other local authorities across the United States. It uses leverage to enhance income, which also increases price volatility.

The fund has been managed for decades within the Dreyfus family of funds, which became part of BNY Mellon after the 2007 merger of The Bank of New York and Mellon Financial. It was later renamed under the BNY Mellon brand. As a closed-end fund it has a fixed number of shares, so its market price can trade at a premium or discount to net asset value.

LEO pays regular monthly distributions funded by the interest income from its bond portfolio. Its performance is sensitive to interest rates, credit conditions in the municipal market and the cost of its leverage. The fund continues to trade on the NYSE alongside other BNY Mellon municipal closed-end funds.