- BIT invests in a number of securitized bonds, CLOs, and corporate bonds in order to generate income for its investors.
- The portfolio is incredibly well diversified and should likely be reasonably safe despite a good portion of it being below investment-grade.
- The fund boasts a substantially higher yield than ETF options due to its focus on high-yield and the use of leverage.
- BIT is easily able to cover the distributions that it pays ou,t so it should be able to provide a steady source of reliable income.
- The fund is trading at a premium and looks a bit expensive compared to its historical normal level.
For further details see:
BIT: Beat The Fed With This High-Yielding CEF