Closed-End Fund Market Update - Webinar
Jon Diorio, Director of Closed-End Funds at BlackRock, sits down with portfolio managers Tom Musmanno and Peter Hayes to discuss the recent volatility in the fixed income closed-end fund market. More specifically they focus on recently launched funds BIT and BTT and give their insight on performance, positioning, and outlook going forward.
Volatility in Fixed Income Markets
Rising Rates and Municipal CEFs
BTT's Current Positioning
BIT – Performance and Outlook
BTT – Performance and Outlook
Discounts in Multi-Sector CEF Market
Discounts in Municipal CEF Market
Rising Rates and the Impact on Portfolio Leverage
Investing involves risk, including possible loss of principal amount invested. Closed-End Fund Shares may only be purchased or sold through registered broker/dealers. For more information regarding any of BlackRock's closed-end funds, please call BlackRock at 800-882-0052. No assurance can be given that a fund will achieve its investment objective. Closed-end fund shares may trade at a discount to net asset value (NAV).
The market value and net asset value (NAV) of a fund's shares will fluctuate with market conditions. Closed-end funds may trade at a premium to NAV but often trade at a discount. Index returns are for illustrative purposes only and do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies. Mortgage-backed securities (“MBS”) represent interests in “pools” of mortgages and are subject to credit, prepayment and extension risk, and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain MBS. Commercial mortgage-backed securities ("CMBS") represent interests in "pools" of commercial mortgages and are subject to credit, prepayment and extension risk, and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of CMBS. High yield securities may be more volatile, be subject to greater levels of credit or default risk, and may be less liquid and more difficult to sell at an advantageous time or price to value than higher-rated securities of similar maturity.
Prepared by BlackRock Investments, LLC, member FINRA.
BLACKROCK is a registered and unregistered trademarks of BlackRock, Inc. All other trademarks are those of their respective owners.
Over 80 closed-end funds diversified across multiple asset classes.