BGT Stock Recent News

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.

Floating rate debt should remain in demand as the Fed continues to raise its benchmark rate. Further, the market is starting to come to terms with the fact that rates will be "higher for longer".

BlackRock announced its latest distributions earlier this month, with several boosts and cuts. Of those that boosted, two of those were FRA and BGT.

Floating rate debt should perform well as interest rates keep rising. With higher rates being a primary concern for markets, investors can front-run this through buying funds like BGT. BGT still offers a sizable discount to NAV, although it has narrowed since April.