BGT Stock Recent News

BGT has performed well, with a total return of over 17% since October 2023, since it was last covered. Lower Fed funds will lead to lower yields and a shift in market sentiment towards fixed assets, just like in past cycles. BlackRock Floating Rate Income Trust's premium to NAV is at a decade high but is expected to fall back to a discount as the Fed cuts rates.

BlackRock Floating Rate Income Trust Fund is a closed-end fund that aims to generate a high level of income with less volatility than fixed-income funds. The fund has a lower yield than its peers, but also lower risk exposure due to lower levels of leverage. The fund's recent performance has been strong, outperforming both investment-grade and junk bonds.

Stock #6 : Cohen & Steers Closed-End Opportunity Fund, Inc. (NYSE: FOF) Yield: 10.55% Number of shares for $20,000: 1,739 Monthly Dividend Income:~$175.83 Balanced funds offer both capital appreciation potential as well as the safety and income aspects of bonds.

The BlackRock Floating Rate Income Trust Fund offers an attractive current yield of 11.26%, which is in line with its peers.

The article evaluates the BlackRock Floating Rate Income Trust as an investment option at its current market price. Investing in floating rate securities has been a successful strategy, delivering strong total returns. But that could change next year. I see an uptick in default rates and a more dovish Fed in 2024 as potential headwinds that will moderate returns going forward.

The BlackRock Floating Rate Income Trust is a closed-end fund that focuses on leveraged loans with the primary goal of generating current income for investors. The fund's distribution yield is well-covered, with most of the distribution coming from income received from underlying loans (96%) rather than return of capital. BGT maintains a balanced composition, with 62% of the portfolio in 'B' rated loans and only 9.35% in 'CCC' loans, demonstrating a diversified risk approach.

BlackRock Floating Rate Income Trust has been a strong performer, outpacing the S&P 500. The fund is currently trading at a discount to its net asset value, making it an attractive investment. BGT's income has been increasing along with higher interest rates, making it a good option for investors looking for a high income stream.

We review CEF market valuation and performance through the first week of July and highlight recent market action. CEFs were roughly flat on the week as NAVs fell while discounts remained resilient. CEF discounts tend to be procyclical, which remains an odd but welcome feature of the CEF market.

BGT generates a high distribution yield from a portfolio of junk loans. BlackRock Floating Rate Income Trust pays an attractive 11.8% forward distribution yield. However, I recommend investors avoid BGT as there is a mismatch between the fund's long-term returns of 5.4% over 15 years and the double-digit distribution yield paid.

19 out of 22 CEF sectors were positive on price and 12 out of 22 sectors were positive on NAV last week. Delaware/Abrdn mergers are closing this week.