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Capstone Capital LLC lessened its position in Invesco Taxable Municipal Bond ETF (NYSEARCA:BAB) by 92.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,009 shares of the company's stock after selling 24,248 shares during the
Hershey Financial Advisers LLC purchased a new position in shares of Invesco Taxable Municipal Bond ETF (NYSEARCA:BAB) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 133,502 shares of the company's stock, valued at approximately $3,542,000. Invesco Taxable Municipal Bond ETF
Babcock International PLC (LSE:BAB) is set up to beat expectations, that's according to RBC, which lifted its price target to 1,280p after meeting management and reviewing what it calls a “needle-moving” combination of solid H1 results, a strong order pipeline and flexible capital allocation options. Analysts at the Canadian bank, in a note, repeated an 'Outperform' rating and nudged earnings estimates around 2% higher, leaving forecasts slightly ahead of consensus.
Shares in defence stocks such as Babcock International PLC (LSE:BAB) and BAE Systems PLC (LSE:BA.) led the FTSE fallers on Monday, as Israel and Hamas exchange hostages under the new ceasefire agreement, lowering tensions in the Middle East.
Babcock International PLC (LSE:BAB) shares fell from the all-time high reached earlier in the week after the defence contractor said trading in the first five months of its financial year had been "encouraging", with organic revenue growth and underlying operating margin progress in line with board expectations. The FTSE 100-listed group kept its full-year outlook unchanged, having upgraded its medium-term guidance in June.
BAB is a well-constructed, diversified ETF focused on taxable municipal bonds, prioritizing investment-grade credit and moderate maturities. Despite sound design, BAB's yield (around 4%) is lower than alternatives like USFR, BBN, SGOV, or SHYM, given similar or less risk. The fund's conservative approach limits yield; I believe more selective or active strategies can outperform broad muni index funds like BAB.
UK defence stocks are in focus on Wednesday after Chancellor Rachel Reeves said the country's defence spending will increase to 2.6% of the gross domestic product (GDP) by April 2027. This translates to about an £11 billion annual boost aimed at strengthening the military, security, and intelligence sectors.
Babcock International PLC (LSE:BAB) shares were lifted almost 3% to 884.8p, the highest since summer 2017, as a host of banks and brokers warmed to its Cavendish Nuclear business. JPMorgan analyst David Perry raised his share price target to £11 from £10 as he said the next five years "look very exciting.
Though the S&P 500 has recently returned to positive territory in terms of year-to-date (YTD) performance, turbulence throughout 2025 so far may have pushed skittish investors away from stocks and toward bonds.
Melrose Industries PLC (LSE:MRO, OTC:MLSPF) and Babcock International PLC (LSE:BAB) shares both dropped 8% in early Monday trading, as fears of a global recession triggered by President Trump's sweeping tariffs sent shockwaves through industrial stocks. The two engineering groups, which export a significant share of their output, are particularly exposed to disruptions in global trade and investment.
Shares in BAE Systems PLC (LSE:BA.) and Babcock International PLC (LSE:BAB) fell 4.5% and 7.2% in Monday morning trading as stock markets continued to react to US tariffs imposted by Donald Trump, reactions from other countries and what the economic fallout could be.
Evaluating Invesco Taxable Municipal Bond ETF (BAB) as a "buy" due to its quality yield and relative value in a volatile equity market. Historically lukewarm on BAB, but current market conditions and equity volatility make it a more attractive investment for 2025 and beyond. BAB offers a passive investment approach, contrasting with leveraged CEFs, and tracks US dollar-denominated taxable municipal debt.
BAE Systems PLC (LSE:BA.) and Babcock International PLC (LSE:BAB) are expected to benefit from a sharp rise in UK defence spending, according to Panmure Liberum.
JPMorgan analysts have highlighted further upside at the likes of BAE Systems PLC (LSE:BA.) and Babcock International PLC (LSE:BAB) as Europe plays catch up in its efforts to rearm.
Invesco Taxable Municipal Bond ETF is a passive ETF that tracks the performance of US dollar-denominated taxable municipal debt. The outlook for BAB is modest, with a potential for 2-3% returns, which is weak compared to inflation and cash offerings. Low levels of issuance in the taxable municipal bond sector could be a bullish catalyst for the Fund.
Invesco Taxable Municipal Bond ETF offers exposure to the municipal bond market, providing diversification and potential higher yields. The BAB ETF invests primarily in high-grade bonds, with a concentration in the Local Authorities sector, which can be both a strength and a risk. BAB has underperformed compared to other muni bond funds, potentially due to its duration and sampling strategy, making it a less exciting investment option.
BAB: A Different View On Muni Bonds, But Not A Better One
With the expectation that the U.S. Federal Reserve will taper interest rate hikes in the second half of 2023, fixed income investors are turning to more yield. They may find what they're looking for in municipal bonds.
With uncertainty around interest rates, inflation, and the possibility of recession, most investors will benefit by staying within the short to intermediate part of the curve when allocating to fixed income ETFs. Similarly, opting for balanced fixed income exposure as opposed to making big bets is recommended in the current environment.