BIT: This Fund Has A Historically Attractive Price, But It Could Get Cheaper
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The BlackRock Multi-Sector Income Trust (BIT) 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.
December 25, 2024 | 10:00 am
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The BlackRock Multi-Sector Income Trust (BIT) offers a high distribution yield of 10.36%, but its leverage ratio of 38.32% is higher than its peers, increasing risk. The fund's strategy is to avoid overvalued sectors.
The article highlights BIT's attractive yield but also points out the higher leverage risk compared to peers. The fund's strategy to focus on better-valued sectors is positive, but the high leverage could deter risk-averse investors, balancing the short-term impact.
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