Bank of America Highlights Buy-Rated Funds Offering Double-Digit Yields for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 02 2025
0mins
Source: CNBC
Investment Opportunities in Closed-End Funds: Bank of America Securities highlights that closed-end funds (CEFs) offer attractive double-digit yields, with some sectors like loans, multi-sector, and convertibles averaging yields of 11% or more, despite current market valuations not being particularly appealing.
Recommended Funds and Market Trends: The firm recommends several CEFs, including BlackRock MuniAssets and Pimco High Income Fund, noting that many funds are trading at discounts and have strong distribution rates, while also cautioning investors about potential fees and leverage risks.
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Analyst Views on MUA
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About MUA
BlackRock MuniAssets Fund, Inc. (the Fund) is a closed-end management investment company. The Fund's investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes. The Fund invests approximately 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (Baa or lower by Moody's Investors Service, Inc. (Moody's) or BBB or lower by Standard & Poor's Corporation (S&P)) or securities, which are of comparable quality. The Fund invests in a range of sectors, including health, transportation, tobacco, education, utilities, state, corporate, and housing. Investment adviser of the Fund is BlackRock Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Distribution Frequency Change: Certain BlackRock closed-end funds have announced a shift from monthly to quarterly distributions to enhance visibility on future payouts, thereby boosting investor confidence and optimizing liquidity.
- Distribution Amount Overview: For instance, the BlackRock Municipal 2030 Target Term Trust (BTT) has a monthly distribution of $0.046400, indicating stable cash flow that is expected to attract more investors seeking reliable income.
- Managed Distribution Plan: The BlackRock Capital Allocation Term Trust (BCAT) and BlackRock ESG Capital Allocation Term Trust (ECAT) have adopted a managed distribution plan to ensure a monthly distribution rate of 20% of each fund's 12-month rolling average net asset value, maintaining investor yield expectations.
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Amounts Specified: The announcement includes details on the amounts to be distributed for these funds.
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- Shareholder Value Enhancement Program: All Survivor Funds will implement a Discount Management Program, aiming to repurchase at least 5% of outstanding shares in 2026 if their shares trade at an average discount exceeding 10% during the measurement period, thereby enhancing long-term shareholder value.
- Non-Taxable Events: The reorganizations are expected to be non-taxable events, meaning shareholders will not face tax burdens during the reorganization process, which increases investor appeal and confidence.
- Transparency and Information Updates: BlackRock commits to updating fund performance data monthly and providing relevant information on its website, ensuring investors can access important investment information in a timely manner, thereby enhancing market transparency.
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- Adoption of Discount Management Programs: The company has also adopted discount management programs as part of its strategy.
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- Merged Fund Distributions: BlackRock has announced that the merged funds will distribute payments on March 13, 2026, ensuring liquidity and investor confidence post-merger for multiple fund shareholders.
- Stable Distribution Amounts: The merged national funds, such as MHD and MYI, will maintain monthly distributions at $0.059500 and $0.055500, reflecting stable income generation that helps attract long-term investors.
- Trading Cessation Arrangements: To facilitate the merger, shares of the relevant funds will cease trading on February 6 and February 20, 2026, ensuring a smooth merger process and reducing market volatility risks.
- Compliance Notification Issued: BlackRock has issued compliance notices to shareholders, ensuring all distributions meet the requirements of the Investment Company Act of 1940, thereby enhancing transparency and protecting investor rights.
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- Special Distribution Notification: CII also announced a special distribution of $0.113 per share on November 14, 2025, aimed at boosting investor confidence and attracting further investments.
- Tax Compliance Measures: To comply with Section 19 of the Investment Company Act of 1940, all funds have sent notices to shareholders, ensuring transparency and adherence to regulatory requirements.
- Managed Distribution Plan: BlackRock Capital Allocation Term Trust (BCAT) and BlackRock ESG Capital Allocation Term Trust (ECAT) have adopted a managed distribution plan to ensure a monthly distribution rate of 20%, supporting stable investment returns.
See More
BlackRock Closed-End Funds Distribution Announcement
- Distribution Frequency Change: Certain BlackRock closed-end funds have announced a shift from monthly to quarterly distributions to enhance visibility on future payouts, thereby boosting investor confidence and optimizing liquidity.
- Distribution Amount Overview: For instance, the BlackRock Municipal 2030 Target Term Trust (BTT) has a monthly distribution of $0.046400, indicating stable cash flow that is expected to attract more investors seeking reliable income.
- Managed Distribution Plan: The BlackRock Capital Allocation Term Trust (BCAT) and BlackRock ESG Capital Allocation Term Trust (ECAT) have adopted a managed distribution plan to ensure a monthly distribution rate of 20% of each fund's 12-month rolling average net asset value, maintaining investor yield expectations.
- Tax Compliance Notices: All funds have sent Section 19 notices to shareholders to comply with the Investment Company Act of 1940, enhancing transparency and assisting investors in understanding the sources and tax characteristics of distributions.
See More
Announcement of Distribution Dates and Amounts for Specific BlackRock Closed-End Funds
Distribution Dates Announced: Specific distribution dates for certain BlackRock closed-end funds have been announced.
Amounts Specified: The announcement includes details on the amounts to be distributed for these funds.
See More
BlackRock Completes Reorganizations of Multiple Closed-End Funds
- Reorganization Completed: BlackRock announced the completion of reorganizations for several closed-end funds, including merging the BlackRock Long-Term Municipal Advantage Trust (BTA) into the MuniAssets Fund (MUA), which enhances asset management efficiency and portfolio diversification.
- Shareholder Value Enhancement Program: All Survivor Funds will implement a Discount Management Program, aiming to repurchase at least 5% of outstanding shares in 2026 if their shares trade at an average discount exceeding 10% during the measurement period, thereby enhancing long-term shareholder value.
- Non-Taxable Events: The reorganizations are expected to be non-taxable events, meaning shareholders will not face tax burdens during the reorganization process, which increases investor appeal and confidence.
- Transparency and Information Updates: BlackRock commits to updating fund performance data monthly and providing relevant information on its website, ensuring investors can access important investment information in a timely manner, thereby enhancing market transparency.
See More
BLACKROCK REPORTS FINISHING MUNICIPAL CEF REORGANIZATIONS AND IMPLEMENTING DISCOUNT MANAGEMENT STRATEGIES
- Announcement of Completion: BlackRock has announced the completion of certain municipal reorganizations.
- Adoption of Discount Management Programs: The company has also adopted discount management programs as part of its strategy.
See More
BlackRock Announces Distribution Details for Merged Funds
- Merged Fund Distributions: BlackRock has announced that the merged funds will distribute payments on March 13, 2026, ensuring liquidity and investor confidence post-merger for multiple fund shareholders.
- Stable Distribution Amounts: The merged national funds, such as MHD and MYI, will maintain monthly distributions at $0.059500 and $0.055500, reflecting stable income generation that helps attract long-term investors.
- Trading Cessation Arrangements: To facilitate the merger, shares of the relevant funds will cease trading on February 6 and February 20, 2026, ensuring a smooth merger process and reducing market volatility risks.
- Compliance Notification Issued: BlackRock has issued compliance notices to shareholders, ensuring all distributions meet the requirements of the Investment Company Act of 1940, thereby enhancing transparency and protecting investor rights.
See More
BlackRock Announces Distribution Plans for Multiple Closed-End Funds
- Distribution Announcement: BlackRock Enhanced Large Cap Core Fund (CII) declared a December distribution of $0.141 per share for 2025, reflecting the company's ongoing commitment to providing stable returns to investors.
- Special Distribution Notification: CII also announced a special distribution of $0.113 per share on November 14, 2025, aimed at boosting investor confidence and attracting further investments.
- Tax Compliance Measures: To comply with Section 19 of the Investment Company Act of 1940, all funds have sent notices to shareholders, ensuring transparency and adherence to regulatory requirements.
- Managed Distribution Plan: BlackRock Capital Allocation Term Trust (BCAT) and BlackRock ESG Capital Allocation Term Trust (ECAT) have adopted a managed distribution plan to ensure a monthly distribution rate of 20%, supporting stable investment returns.
See More
