- BGT is a closed-end fund focused on floating rate loans. This is an area I view positively heading forward.
- While I do like floating-rate loans, readers should note BGT is filled with mostly below-investment grade debt, so there are risks to this particular fund.
- Despite the lower quality debt, high yield loans tend to have a lower default rate than below investment grade bonds. This means there is relative value with floaters.
- While BGT has had a very positive move since my last review, it still sits at a reasonable discount to NAV.
For further details see:
BGT: I See Merit To Buying Floaters