BlackRock Multi-Sector Income Trust

BlackRock Multi-Sector Income Trust is a closed-end management investment company. It invests in asset-backed and mortgage-backed securities, collateralized debt obligations, multiple class pass-through securities, zero-coupon bonds, capital trusts and trust preferred securities, preferred stock, floating rate loan interests, forward commitments and when-issued delayed delivery securities, mortgage dollar roll transactions, and reverse repurchase agreements. The company was founded on November 13, 2012 and is headquartered in Wilmington, DE.

BlackRock Multi-Sector Income Trust is a closed-end investment fund, which engages in investment solutions. It invests directly in such securities or synthetically through the use of derivatives. The company was founded on November 13, 2012 and is headquartered in Wilmington, DE.

The BlackRock Multi-Sector Income Trust offers a 10.36% distribution yield, appealing for income-focused investors but lower than its peers. The fund's leverage increases both yield and risk, with a current leverage ratio of 38.32%, higher than its peers. The fund's diversified strategy allows flexibility in asset allocation, avoiding overvalued sectors and focusing on those with better valuations.

BIT: This Fund Has A Historically Attractive Price, But It Could Get Cheaper

The BlackRock Multi-Sector Income Trust offers a 9.80% yield but faces sustainability concerns due to recent distribution coverage issues. The fund's flexibility to invest in foreign bonds and currencies provides some inflation protection, but its current U.S.-centric portfolio limits this advantage. The fund is more diversified across sectors than some of BlackRock's other debt fund offerings, but it is not as good for investors looking for foreign exposure.

BIT: Good In Theory, But This Bond CEF Disappoints In Practice

The BlackRock Multi-Sector Income Trust has seen a negative performance since our prior 'Sell' rating, with -6.9% price loss in the process. BIT has a multi-asset approach with a bar-belled portfolio, being long a pocket of BB and B names versus a sleeve of AAA-rated assets. The CEF has seen its premium to NAV normalize, a factor which has contributed to a better valuation framework.

BIT: Premium Normalization For This CEF, 10% Distribution (Rating Upgrade)

The BlackRock Multi-Sector Income Trust generates high income from a multi-sector portfolio of fixed income securities. Investors who like the BIT fund appear to be too complacent, bidding credit spreads to cycle lows despite elevated defaults. With the economy slowing in 2024, I expect credit spreads to eventually catch up with defaults and negatively impact credit funds like the BIT.

BIT: Might Be Time To Sell (Rating Downgrade)

Apple

AbbVie

Apollo Tactical Income Fund, Inc.

Amazon

Ares Dynamic Credit Allocation Fund

Chimera Investment

Credit Suisse High Yield Bond Fund

Duff & Phelps Global Utility Income Fund Inc

Duke Energy

First Trust Senior Floating Rate Income Fund II

Golub Capital BDC

Clough Global Opportunities Fund

Alphabet

Goldman Sachs

Goldman Sachs BDC

Horizon Technology Finance

Voya Global Equity Dividend and Premium Opportunity Fund

Nuveen Core Equity Alpha Fund

Johnson & Johnson

MPLX

Merck

Morgan Stanley

Microsoft

NextEra Energy

Naturally, one should monitor their portfolio on a regular basis in case there are any news events or market circumstances that can affect a stock price or its dividend adversely.

Want $2000 In Passive Income? Invest $1000 Into These Dividend Stocks

BlackRock Multi-Sector Income Trust outperformed its peers during the recent monetary tightening regime by immunizing the fund from duration via interest rate swaps. The composition of BIT's portfolio follows a bar-belled approach, with high-yield exposure balanced by AAA assets. However, this methodology has encountered trouble in the current inflationary environment. BIT is currently trading at a generational high premium to NAV. Additionally, the fund is a chronic over-distributor, with a high percentage of its distribution coming from the return of capital.

A Sell Signal For CEF BIT: Its Historic High Premium (Downgrade)

The BlackRock Multi-Sector Income Trust is a fixed-income closed-end fund that offers a high income for investors. The fund has a current yield of 9.72%, which compares pretty well to many other debt-focused closed-end funds. However, the fund's performance has been mixed, with a slight profit of 0.36% recently, but still better than the loss of the Bloomberg U.S. Aggregate Bond Index.

BIT: Safer Environment For Bonds But This CEF Is Still Overpriced

The BlackRock Multi-Sector Income Trust offers a reasonable 9.80% yield for income-focused investors. The fund invests in safer securities than other funds with higher yields, making it attractive for risk-averse investors. The fund's recent performance has been decent, but its strength relies heavily on the Federal Reserve cutting interest rates, which seems unlikely.

BIT: Some Attractive Characteristics, But The Market Has Overbid The Shares

BIT is a diversified bond CEF focusing on high-yield bonds. Although returns and distributions have both been quite strong in the recent past, the fund does not currently trade at an attractive price. Coverage is looking spotty. An overview of the fund follows.

BIT: Fantastic Fund, Terrible Price

The high inflation rate in the U.S. has increased the cost of living, making it difficult for many people to make ends meet. The BlackRock Multi-Sector Income Trust offers a 9.89% yield, providing a potential source of extra income for investors. The fund primarily invests in debt securities, with a focus on high-yield bonds, and uses leverage to boost its returns.

BIT: A Well-Managed 9.89%-Yielding Bond CEF, But An Expensive One

BlackRock Multi-Sector Income Trust has successfully navigated rising interest rates, outperforming its peers by using interest rate swaps and creating a flat duration profile. The fund is now transitioning to taking duration risk again as rates peak, with a bar-belled approach to its collateral, including a significant amount of 'AAA', 'B', and 'CCC' assets. The main risk for BIT is corporate credit spread risk going forward, mitigated by a large bucket of AAA assets.

BIT: Revisiting A Multi-Asset CEF, 10% Yield

NEW YORK--(BUSINESS WIRE)--BlackRock Advisors, LLC (“BlackRock”) announced today a change to the tax and fiscal year end (“FYE”) for BlackRock Multi-Sector Income Trust (NYSE: BIT, CUSIP: 09258A107) (the “Trust”). This change will be effective as of December 31, 2023. Ticker (NYSE) Fund Current FYE New FYE BIT BlackRock Multi-Sector Income Trust 10/31 12/31 For more information on BlackRock's closed-end funds, please visit www.blackrock.com/CEF About BlackRock BlackRock's purpose is to help mor.

BlackRock Announces Fiscal Year End Change for BlackRock Multi-Sector Income Trust (BIT)

Investors are desperate for income today because of the rapidly-rising cost of living. BIT invests in a portfolio of traditional fixed-income and alternative credit securities to provide a high level of current income to its shareholders.

BIT: Some Good Things, But Distribution Sustainability Is Questionable

The BIT fund provides high income from a portfolio of fixed income securities. I am concerned about BIT as the fund has over 20% of managed assets rated CCC or lower heading into a potentially weakening economy in 2023.

BIT: High Exposure To CCC Or Lower Credits

BIT provides a way to obtain the extra income that is needed to weather today's rising cost of living. The fund invests in a levered bond portfolio to achieve a very high yield.

BIT: This High-Yielding Bond Fund Might Be Worth Considering Today

BIT is a fixed-income multi-sector closed-end fund from the BlackRock suite. BIT is a rare CEF where management chose to take a view on interest rates and positioned the fund with a flat duration profile.

BIT: When Zero Duration Does Outperform

BIT is a leveraged bond CEF, focusing on high-yield bonds.

BIT: Strong High-Yield Bond CEF, 9.4% Distribution Yield, Good Discount And Performance

BlackRock Multi-Sector Income Trust (BIT) is a fixed income closed-end fund. The fund has exhibited an extraordinary resilience in the face of the Fed tapering announcement and increased rates.

BIT: Trouncing The Competition

BIT is a fixed-income multi-sector closed-end fund from the BlackRock suite. The fund employs an active trading strategy with duration positioning.

BIT - Multi-Sector BlackRock CEF With An Active Trading Strategy

The 8% yield of BIT looks very attractive if the distribution can be maintained. I continue my series digging into CEFs beyond the yield with a look at BIT.

Evaluating CEFs: NAV Erosion Is A Bit Of A Concern For BIT

Apollo Senior Floating Rate Fund

Blackstone Strategic Credit Fund

BlackRock 2022 Global Income Opportunity Trust

Blackstone Long-Short Credit Income Fund

Blackrock Limited Duration Income Trust

Blackstone/GSO Senior Floating Rate Term Fund

MFS Intermediate High Income Fund

BNY Mellon High Yield Strategies Fund 

Eaton Vance Short Duration Diversified Income Fund

PGIM Global High Yield Fund

Western Asset High Income Fund

Pioneer Diversified High Income Trust

PGIM High Yield Bond Fund

Nuveen Floating Rate Income Opportunity Fund ETF

Neuberger Berman High Yield Strategies Fund Inc

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

Pioneer Floating Rate Trust

Pioneer High Income Trust

PGIM Shrt Duratin Hgh Yld Opprtnts Fund

Invesco High Income Trust II

These are some options that I think you can buy today if you own the selling candidate. Some of the buy candidates on here I would even buy outright if I didn't own the "sell."

Some Relative CEF Value Trades And Opportunities

BIT is a diversified bond fund, focusing on low-quality, high-yield corporate bonds.

BIT: Strong Leveraged Bond CEF, 8.0% Distribution Yield, Market-Beating Returns, Risky Holdings

BIT invests in a number of securitized bonds, CLOs, and corporate bonds in order to generate income for its investors.

BIT: Beat The Fed With This High-Yielding CEF

BIT: On The Lookout For A Cheaper PIMCO Alternative

BlackRock Floating Rate Income Trust

Vertical Capital Income Fund.

Floating rate ("loan") securities have been out of favor for more than a year as investors saw interest rates plummet. The loan market looks very compelling relative to high-yield fixed coupon bonds. The avg. price is below par vs. a premium to par for bonds.

News for BlackRock Multi-Sector Income Trust ETF (BIT)