BGT: Solid Returns But High Fees And High Volatility

2025-02-03 23:38:10 ET

Summary

• The BlackRock Floating Rate Income Trust aims for high current income and capital preservation and has a current distribution rate of 11.3%.
• BGT has historically delivered solid returns, but with high levels of volatility.
• BGT currently trades at a premium to NAV, but historically has on average traded at a discount to NAV.
• BGT's distribution may be unsustainable given the significant share that is funded by returns of capital.
• I rated BGT a Hold.

The BlackRock Floating Rate Income Trust ( BGT ) (the "Trust") is an investment Trust which seeks to deliver high levels of current income. The Trust has a secondary objective of preservation of capital....

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