Three BlackRock Debt Funds Decline in Quality as Treasury Yields Decrease
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Decline in BlackRock Funds: Three BlackRock fixed-income closed-end funds have seen significant drops in their quality rankings, placing them in the lowest decile for operational efficiency and financial health amid declining U.S. Treasury yields.
Specific Fund Performance: The BlackRock Credit Allocation Income Trust (BTZ), BlackRock Debt Strategies Fund Inc. (DSU), and BlackRock Corporate High Yield Fund Inc. (HYT) all experienced steep declines in their quality scores, indicating vulnerabilities in the credit sector and prompting investors to consider alternatives with stronger financial resilience.
Analyst Views on BTZ
About BTZ
BlackRock Credit Allocation Income Trust (the Trust) is a diversified, closed-end management investment company. The Trust's investment objective is to provide current income, current gains and capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (junk bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust has investment in various sectors, such as aerospace and defense, automobile components, banks, consumer finance, beverages, and chemicals, among others. The Trust's manager 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.
