BlackRock Floating Rate Income Trust (BGT)

BlackRock Floating Rate Income Trust Fund is downgraded to a sell due to persistent earnings weakness and unsupported dividends. BGT's NAV has steadily declined, with recent semi-annual net investment income insufficient to cover its 12.5% yield. The fund's high allocation to below-investment-grade debt and use of leverage amplify risks, especially if interest rates remain elevated.

Donoghue Forlines LLC acquired a new position in BlackRock Floating Rate Income Trust (NYSE: BGT) during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 939,719 shares of the investment management company's stock, valued at approximately $11,418,000. BlackRock Floating Rate Income

BlackRock Floating Rate Income Trust is evaluated as a current investment option focusing on high current income via senior secured floating rate loans. BGT's performance has been reasonable since late 2023, but it has lagged equities and performed in line with other high-yield debt funds. The fund's discounted market price remains a positive attribute for valuation-focused investors seeking income in the current environment. But defaults and distressed debt levels have me concerned.

BlackRock Floating Rate Income Trust remains unappealing due to low credit spreads, declining rates, and a premium to NAV versus discounted peers. BGT's heavy exposure to single-B leveraged loans and 15% leverage heighten risk, especially as recent defaults show sharply lower recoveries. With SOFR and Fed Funds rates projected to fall, BGT's yield and distributions are likely to decrease over the next year.

BGT offers high monthly income (11.5% yield) from floating rate loans, benefiting from the current high interest rate environment. The fund's heavy exposure to below-investment-grade borrowers increases risk, especially if defaults rise amid economic slowdown or trade disruptions. BGT trades at a slight premium to NAV, but historically has traded at a discount; future rate cuts could pressure both NAV and distributions.

The BlackRock Floating Rate Income Trust offers a high yield of 12.03%, but its income is highly dependent on Federal Reserve interest rate policies. The fund's distribution is unsustainable due to declining net investment income and expected interest rate cuts, likely leading to a distribution cut. The market is expecting four interest cuts this year due to a recession setting in.

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.

The BlackRock Floating Rate Income Trust offers a high 10.99% yield but faces potential distribution cuts due to expected Federal Reserve interest rate reductions. Despite outperforming fixed-rate bonds in the past, the fund's recent performance has lagged, and its net asset value has declined. The Federal Reserve is planning to reduce interest rates going forward, which will probably reduce this fund's income.

BGT has performed well, with a total return of over 17% since October 2023, since it was last covered. Lower Fed funds will lead to lower yields and a shift in market sentiment towards fixed assets, just like in past cycles. BlackRock Floating Rate Income Trust's premium to NAV is at a decade high but is expected to fall back to a discount as the Fed cuts rates.

BlackRock Floating Rate Income Trust Fund is a closed-end fund that aims to generate a high level of income with less volatility than fixed-income funds. The fund has a lower yield than its peers, but also lower risk exposure due to lower levels of leverage. The fund's recent performance has been strong, outperforming both investment-grade and junk bonds.

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NEW YORK--(BUSINESS WIRE)--Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below. Municipal Funds: Declaration- 3/1/2024   Ex-Date- 3/14/2024   Record- 3/15/2024   Payable- 4/1/2024 National Funds Ticker Distribution Change From Prior Distribution BlackRock Municipal Income Quality Trust* BYM $0.052500 - BlackRock Long-Term Municipal Advantage Trust* BTA $0.043500 - BlackRock MuniAssets Fund, Inc.* MUA $0.055500 - BlackRock Municipal Income Fund, Inc.

The BlackRock Floating Rate Income Trust Fund offers an attractive current yield of 11.26%, which is in line with its peers.

Stocks were up slightly as the jobs report shifted the narrative towards 'higher for longer.' The payroll report came in stronger than expected, but the narrative was that it was a hawkish report, meaning higher rates for longer. Discounts for CEFs continue to tread water, with real estate and interest rate-sensitive bond sectors performing well, while emerging market equity and convertibles performed poorly.

NEW YORK--(BUSINESS WIRE)--Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below. BlackRock Floating Rate Income Trust (NYSE: BGT), BlackRock Floating Rate Income Strategies Fund, Inc. (NYSE: FRA) and BlackRock Debt Strategies Fund, Inc. (NYSE: DSU) announced increases to their monthly distributions. Certain BlackRock municipal Funds previously declared their December, January and February distributions and declared special distributions today in order.