BMN

BlackRock 2037 Municipal Target Term Trust is a closed-end management investment company with a defined termination date in 2037 that seeks to provide current income exempt from federal income taxes by investing primarily in municipal bonds. Managed by BlackRock Advisors, LLC, the fund invests in investment-grade and below-investment-grade municipal securities issued by or on behalf of states, territories, possessions of the United States, and their political subdivisions, agencies, and instrumentalities. The term structure provides a predetermined liquidation date when fund assets will be sold and proceeds distributed to shareholders. The fund's portfolio includes municipal bonds issued for various public purposes including infrastructure, education, healthcare, utilities, transportation, and other governmental functions. The 2037 target termination date aligns the fund's maturity profile with the term structure, potentially allowing the fund to hold bonds to maturity and avoid forced selling during market dislocations. The term fund structure addresses a common concern with perpetual closed-end funds—the potential for sustained discounts to net asset value (NAV). As the fund approaches 2037, the discount should narrow toward zero since liquidation provides a defined exit at NAV, creating a natural catalyst for discount compression. As a closed-end fund, BlackRock 2037 Municipal Target Term Trust trades on exchanges at prices that may differ from NAV. The fund employs leverage through borrowings or other instruments to enhance returns and income, though leverage increases risk. The trust provides monthly distributions of tax-exempt income. The fund appeals to investors seeking federal tax-exempt income with a defined time horizon matching the 2037 termination, particularly those in higher tax brackets benefiting substantially from tax exemption. The term structure differentiates this fund by providing certainty about the eventual liquidation date and creating potential for discount narrowing as 2037 approaches. Performance is influenced by interest rates, credit conditions, state and local fiscal health, and the fund's discount to NAV dynamics approaching termination.