BGB: This CEF Is Now Fair-Valued (Rating Downgrade)
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The Blackstone Strategic Credit 2027 Term Fund (BGB) has been downgraded from a 'Buy' rating as its discount to NAV has narrowed significantly, contributing to its strong performance over the past year. However, the gains are largely due to valuation normalization rather than fundamental improvements.
January 15, 2025 | 4:45 pm
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NEUTRAL IMPACT
BGB has been downgraded from a 'Buy' rating as its discount to NAV has narrowed, contributing to its strong performance. However, the gains are largely due to valuation normalization rather than fundamental improvements.
The downgrade from 'Buy' reflects the narrowing of BGB's discount to NAV, which was a key factor in its previous strong performance. The lack of fundamental cash flow improvements suggests limited upside potential, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100