Main Thesis
In this article, we review the BlackRock Corporate High Yield (HYT) closed-end fund. With a current yield of 8.38%, this fund can certainly deliver a juicy yield to meet your income needs, but investors need to tread carefully in order to achieve an acceptable total return.
Fund Investment Strategy
(Source: BlackRock)
HYT offers diversified exposure to a leveraged portfolio of short-duration junk bonds. Its holdings are allocated between various industries - some defensive, some more cyclical. The trade-off for junk bonds is that while you're less susceptible to interest rate changes, default