BlackRock Multi-Sector Income Trust Stock News

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,...

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.

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.

NEW YORK--(BUSINESS WIRE)---- $BBN--Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below. Certain BlackRock Funds previously declared their June distributions on May 20, 2024 BlackRock ESG Capital Allocation Term Trust (NYSE: ECAT), BlackRock Capital Allocation Term Trust (NYSE: BCAT), BlackRock Health Sciences Term Trust (NYSE: BMEZ), BlackRock Scien...