BKT - BKT: Bullish Outlook Because The Housing Market Continues To Improve
Main Thesis
The purpose of this article is to evaluate the BlackRock Income Trust (BKT) as an investment option at its current market price. While I have been advocating going long on mortgage debt for years, I continue to see value in the space. The American homeowner is making good on their mortgage obligations, as delinquencies reached a new post-recession low last quarter. Furthermore, fewer Americans are borrowing against their homes. Outstanding home equity lines of credit (HELOCs) are declining consistently, which tells me homeowners are acting responsibility and are not overextended on their property.