BGT - BGT: Value Re-Appears In This Floating Rate CEF

• Floating rate loans and bonds are a reasonable option when deciding how to play an inflationary or rising interest rate environment.
• Despite this traditional wisdom, funds that hold these loans like BGT have seen poor performance in 2022.
• The reasons are multi-fold. The underlying companies are in the high yield sector, amplifying credit risk. BGT is also leveraged, which has investors on edge.
• While credit risk is an issue in an increasingly volatile market, I believe BGT offers some value here. The discount to NAV is nearing 10%, and coverage ratios within this corner of the market are strong.

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