BlackRock Floating Rate Income Trust (NYSE: BGT) is a closed-end management investment company sponsored by BlackRock, Inc., one of the world’s leading asset managers. The Trust seeks to provide current income and capital appreciation by primarily investing in a diversified portfolio of floating rate senior loans, high-yield corporate debt and related credit instruments. By allocating the majority of its assets to senior secured loans, the fund aims to offer investors yield potential while mitigating interest rate sensitivity through adjustable coupon securities.
Since its inception in mid-2019, the Trust has leveraged BlackRock’s global credit platform and research capabilities to construct a portfolio that spans various industry sectors and credit profiles. Portfolio managers draw upon rigorous fundamental analysis, active credit monitoring and scenario modeling to identify floating rate loans issued by U.S. and non-U.S. borrowers as well as sub-investment-grade corporate bonds. Through disciplined credit selection and diversification, the fund seeks to achieve an attractive risk-return profile across market cycles.
The Trust employs modest leverage to enhance income potential and funds distribution payments on a monthly basis, making it a potential option for income-seeking investors. Leveraging is managed within regulatory limits and BlackRock’s internal risk guidelines, with the objective of preserving capital and generating consistent cash flow. The vehicle’s closed-end structure allows the portfolio team to invest without the need for frequent cash redemptions, facilitating exposure to less liquid credit markets where floating rate loans typically trade.
BlackRock Floating Rate Income Trust benefits from BlackRock’s extensive infrastructure, including state-of-the-art risk analytics, credit research and compliance frameworks. The fund is overseen by a team of seasoned credit specialists and portfolio managers who have longstanding experience in leveraged loan and high-yield markets. By combining BlackRock’s global reach with on-the-ground credit analysis, the Trust aims to deliver a distinct investment solution tailored to professional and individual investors seeking diversified floating rate income exposure.
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