BIT: Hard To Justify The Premium For This Fund
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BlackRock Multi-Sector Income Trust (BIT) offers a high yield of 10.13%, but its real after-tax yield is less impressive. The fund's heavy investment in mortgages, which are facing delinquency issues, and a high leverage ratio of 36.25% increase its risk profile.
March 11, 2025 | 11:30 am
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BlackRock Multi-Sector Income Trust (BIT) offers a high yield, but its real after-tax yield is less attractive. The fund's high leverage and exposure to delinquent mortgages increase its risk.
The article highlights BIT's high yield but points out the risks associated with its high leverage and exposure to delinquent mortgages. These factors could negatively impact BIT's performance, making the stock less attractive in the short term.
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