BlackRock Limited Duration Income Trust Stock News

The ongoing trade war has led to a massive increase in uncertainty and bearish sentiment. Credit spreads have widened as a result, going from their lowest levels in history, to solidly above-average. Investing in high-yield corporate bond funds seems like an easy way to profit from these changes.

BlackRock Limited Duration Income Trust is a fixed-income CEF with a 50/50 split between leveraged loans and high yield bonds, and a high leverage ratio of 39%. Currently trading at a premium to NAV, which is unusual and suggests overvaluation; historically, it has traded at a discount. Credit spreads are at decade lows, indicating an overbought market for high yield and a poor entry point for ...

The BlackRock Limited Duration Income Trust offers a high yield of 9.47% with low interest rate risk, which is appealing to income-focused investors. The fund's portfolio is very heavily weighted toward U.S. dollar-denominated securities, but this could be a good thing for the next year or two. The fund's leverage boosts returns but also increases volatility; its current leverage ratio is highe...