NYSE : BLW
-$0.03 (-0.24%)
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BLW: Higher Interest Rates Will Hurt This Fund (Rating Downgrade)
BlackRock Limited Duration Income Trust (BLW) is rated a sell due to heightened downside risks from potential interest rate hikes and heavy below-investment-grade exposure. BLW trades at a 7.78% discount to NAV, but persistent under-earning versus distributions and aggressive 38.68% leverage amplify risk in a deteriorating debt market. The fund's 11% yield is unsustainable; a 25% dividend cut is recommended to slow NAV erosion and align payouts with earnings. seekingalpha.com - 2026-06-17 08:34:24 |