Eaton Vance Municipal Bond Fund (NYSE:EIM) suffered substantial losses like many of its peers when the Fed was hiking rates aggressively. Being a leveraged fund added further pressure due to the Fed raising short-term rates, causing the borrowing rate on their floating rate notes to climb materially. Risk-free rates shot higher, and that meant the underlying portfolio of long-duration municipal bonds shot lower. Today, the fund's discount looks appealing and a recent distribution increase could be a catalyst to see that narrow. However, this distribution bump doesn't look like it came out of nowhere.