NBB vs. PAI

Last updated Jun 24, 2026

NBB (Nuveen Taxable Municipal Income Fund) and PAI (Western Asset Investment Grade Income Fund Inc.) are both Corporate Bonds funds. Over the past 10 years, NBB returned 2.79%/yr vs 3.19%/yr for PAI. At a 0.22 correlation, their price movements are largely independent.

Performance

NBB vs. PAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen Taxable Municipal Income Fund (NBB) and Western Asset Investment Grade Income Fund Inc. (PAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NBB achieves a 1.88% return, which is significantly higher than PAI's -1.19% return. Over the past 10 years, NBB has underperformed PAI with an annualized return of 2.79%, while PAI has yielded a comparatively higher 3.19% annualized return.

NBB

• 1D: 0.45%
• 1M: -0.16%
• YTD: 1.88%
• 6M: 2.72%
• 1Y: 7.52%
• 3Y*: 7.76%
• 5Y*: -0.83%
• 10Y*: 2.79%

PAI

• 1D: 0.10%
• 1M: 0.64%
• YTD: -1.19%
• 6M: -0.77%
• 1Y: 2.39%
• 3Y*: 6.50%
• 5Y*: 0.06%
• 10Y*: 3.19%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NBB vs. PAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NBB Nuveen Taxable Municipal Income Fund	1.88%	13.52%	1.32%	7.62%	-24.60%	0.91%	14.45%	19.48%	-6.37%	12.96%
PAI Western Asset Investment Grade Income Fund Inc.	-1.19%	5.34%	9.17%	9.09%	-22.50%	1.89%	6.71%	23.16%	-12.35%	15.76%

Correlation

The correlation between NBB and PAI is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Apr 28, 2010	0.22

Over the past year, NBB and PAI have become more correlated (0.42) than their long-term average of 0.22, meaning their price movements have been converging.

Return for Risk

NBB vs. PAI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NBB

NBB Risk / Return Rank: 11
NBB Sharpe Ratio Rank: 10
NBB Sortino Ratio Rank: 10
NBB Omega Ratio Rank: 9
NBB Calmar Ratio Rank: 13
NBB Martin Ratio Rank: 13

PAI

PAI Risk / Return Rank: 5
PAI Sharpe Ratio Rank: 5
PAI Sortino Ratio Rank: 5
PAI Omega Ratio Rank: 5
PAI Calmar Ratio Rank: 5
PAI Martin Ratio Rank: 4

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NBB vs. PAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen Taxable Municipal Income Fund (NBB) and Western Asset Investment Grade Income Fund Inc. (PAI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NBB	PAI	Difference
Sharpe ratio: Return per unit of total volatility	0.76	0.30	+0.46
Sortino ratio: Return per unit of downside risk	1.17	0.47	+0.70
Omega ratio: Gain probability vs. loss probability	1.14	1.06	+0.08
Calmar ratio: Return relative to maximum drawdown	1.11	0.31	+0.80
Martin ratio: Return relative to average drawdown	3.36	0.67	+2.68

NBB vs. PAI - Sharpe Ratio Comparison

The current NBB Sharpe Ratio is 0.76, which is higher than the PAI Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of NBB and PAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NBB vs. PAI - Drawdown Comparison

The maximum NBB drawdown since its inception was -33.51%, smaller than the maximum PAI drawdown of -39.03%. Use the drawdown chart below to compare losses from any high point for NBB and PAI.

Drawdown Indicators

	NBB	PAI	Difference
Max Drawdown Largest peak-to-trough decline	-33.51%	-39.03%	+5.52%
Max Drawdown (1Y) Largest decline over 1 year	-6.81%	-7.79%	+0.98%
Max Drawdown (3Y) Largest decline over 3 years	-11.39%	-8.87%	-2.52%
Max Drawdown (5Y) Largest decline over 5 years	-33.51%	-33.71%	+0.20%
Max Drawdown (10Y) Largest decline over 10 years	-33.51%	-33.71%	+0.20%
Current Drawdown Current decline from peak	-6.88%	-11.29%	+4.41%
Average Drawdown Average peak-to-trough decline	-7.66%	-7.13%	-0.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	3.56%	-1.31%

Volatility

NBB vs. PAI - Volatility Comparison

Nuveen Taxable Municipal Income Fund (NBB) has a higher volatility of 2.62% compared to Western Asset Investment Grade Income Fund Inc. (PAI) at 1.18%. This indicates that NBB's price experiences larger fluctuations and is considered to be riskier than PAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NBB	PAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.62%	1.18%	+1.44%
Volatility (6M) Calculated over the trailing 6-month period	7.40%	5.49%	+1.91%
Volatility (1Y) Calculated over the trailing 1-year period	9.93%	7.98%	+1.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.78%	11.99%	+1.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.28%	15.43%	-1.15%

Dividends

NBB vs. PAI - Dividend Comparison

NBB's dividend yield for the trailing twelve months is around 7.46%, more than PAI's 5.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NBB Nuveen Taxable Municipal Income Fund	7.46%	7.33%	6.96%	8.33%	7.86%	5.50%	4.67%	5.54%	6.38%	5.62%	6.35%	6.79%
PAI Western Asset Investment Grade Income Fund Inc.	5.22%	5.45%	4.83%	4.67%	4.82%	3.57%	3.82%	4.43%	5.23%	4.36%	4.82%	5.30%

Frequently Asked Questions

Can I hold both NBB and PAI in my portfolio?

NBB and PAI have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NBB or PAI?

NBB has higher volatility (2.62%) compared to PAI (1.18%). In terms of maximum drawdown, NBB dropped -33.51% vs PAI's -39.03%.

Which has better risk-adjusted returns?

NBB currently has the higher Sharpe Ratio (0.76 vs 0.30), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.