XFLT - BGB: Discount Provides Alpha Opportunity
2025-05-06 17:46:42 ET
Summary
- Blackstone Strategic Credit 2027 Term Fund is a term-structured closed-end fund, which can make its discount even more important as we near the final couple of years.
- Term funds can extend their liquidation date or even attempt to go perpetual, though it is usually only in a manner that would benefit shareholders.
- Due to the term structure for BGB, there is an opportunity to generate alpha while collecting a monthly distribution until its anticipated termination.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Blackstone Strategic Credit 2027 Term Fund ( BGB ) is a closed-end fund, or CEF, that provides exposure to high-yielding securities, primarily senior secured loans. This is offered by one of the world's largest and well-respected alternative investment managers, Blackstone ( BX ). The fund has seen a bit of volatility recently as we saw high-yield spreads widen, though it was off of some of the lowest levels we've seen historically....
BGB: Discount Provides Alpha Opportunity