BGB Stock Recent News

We review CEF market valuation and performance through the third week of September and highlight recent market action. Most sectors saw NAV gains, but discounts widened, particularly in the Covered Call and Equity sectors. Invesco trimmed distributions on many CEFs including IHIT, potentially indicating a termination of this CMBS 2023 term fund.

The Blackstone Strategic Credit 2027 Term Fund has benefited from higher interest rates through distribution increases due to its portfolio of senior secured loans. BGB has a deep discount and is a term fund, offering potential alpha relative to other senior loan funds that aren't term structured. The fund's discount should be realized as it liquidates near the end of 2027, making it an attractive investment option.

Blackstone Strategic Credit Fund aims to provide high current income from a portfolio of senior loans and high yield bonds. The closed-end fund has an annualized yield of 9.4%, using the latest monthly distribution rate.

BGB is heavily invested in senior secured floating rate loans, meaning it should benefit from higher rates. The portfolio is highly leveraged and invests in below-investment-grade securities.