Blackrock Limited Duration Income Trust

BlackRock Ltd. Duration Income Trust is a closed-end investment fund. Its investment objective is to provide current income and capital appreciation. The company was founded on July 13, 2003 and is headquartered in Wilmington, DE.

The BlackRock Limited Duration Income Trust offers a high yield of 9.47% with low interest rate risk, which is appealing to income-focused investors. The fund's portfolio is very heavily weighted toward U.S. dollar-denominated securities, but this could be a good thing for the next year or two. The fund's leverage boosts returns but also increases volatility; its current leverage ratio is higher than preferred but comparable to peers.

BLW: Positioned For U.S. Dollar Strength, But Very Expensive

BLW is a leveraged high-yield bond and loan CEF. It focuses on low-duration securities, with a duration of just 1.9 years. It sports a strong 9.6% distribution yield, and has significantly outperformed these past few years.

BLW: Leveraged High-Yield Bond And Loan CEF, Strong 9.6% Yield And Performance Track Record

The BlackRock Limited Duration Income has a reasonable 9.53% yield, but it is lower compared to other funds investing in similar assets. The fund's performance has been mixed, underperforming the Bloomberg U.S. Aggregate Bond Index in 2022 but outperforming it year-to-date. The fund employs leverage to boost its effective yield, but its leverage level is higher than some peers and its expenses are relatively high.

BLW: A Reasonable Choice For Today's Bond Market, But Watch Its NAV

The BlackRock Limited Duration Income Trust specializes in providing investors with a high level of current income from low-duration securities. The fund has outperformed the Bloomberg Aggregate Bond Index over the past three years, delivering a gain of 13.41% compared to a loss of 10.48% for the index. The fund's distribution of $0.1079 per share results in a current yield of 9.23%, which is higher than some of BlackRock's other fixed-income closed-end funds.

BLW: A Nice Compromise Holding For Your Debt Allocation, But Current Price Is Too High

BlackRock Limited Duration Income Trust has significantly outperformed bond and high-yield bond benchmarks. BLW has a strong distribution yield of 10.4% and a moderate discount to NAV of 5.7%. The fund has low interest rate risk and remains a strong investment opportunity.

BLW: Leveraged High-Yield Bond CEF, Strong 10.4% Yield And Performance

BlackRock Limited Duration Income Trust (BLW) has silently outperformed other fixed-income instruments, with a total return of over 10% in a year of rising rates. The fund's outperformance is attributed to its collateral composition, which contains over 40% floating rate loans. BLW has recently increased its dividend, but this move may have an adverse effect on the fund's NAV in the long term since the vehicle utilizes ROC.

BLW: Silently Outperforming Due To Its Low Duration

BLW gets a 4 star rating from Morningstar. The fund has delivered decent results relative to our benchmark.

Blackrock's BLW: 8.4% Yield Likely Gets Chopped By 25% In 2023

The BlackRock Limited Duration Income Trust invests in high yielding bonds and loans. The fund has an average portfolio duration of 3.5 years.

BLW: Shrinking NAV And Distributions Over Time

BlackRock Limited Duration Income Trust is a fixed income CEF from the BlackRock suite of closed end funds. The CEF is currently trading at a -5% discount to net asset value.

BLW: Impact Of Share Repurchase

Low duration bond funds are best when interest rates are rising, as they currently are. BLW is a strong low duration corporate bond CEF, yields 8.8%, and trades with a 8.7% discount to NAV.

BLW: Strong Corporate Bond CEF, 8.8% Distribution Yield, 8.7% Discount, Low Duration

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Only funds with yields over 6.5%, coverage higher than 85% and trading at under a +5% premium are considered. Top lists of discount, yield, DxY and DxYxZ are given.

'High-High-Low' Closed-End Fund Report, February 2022: ARDC, HYB, JRI Buy Ratings Affirmed

BLW is the BlackRock Limited Duration Income Trust. LDP is the Cohen&Steers Limited Duration Preferred&Income Fund.

BLW Vs. LDP: Comparing Low Duration CEFs

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BlackRock 2022 Global Income Opportunity Trust

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Blackstone/GSO Senior Floating Rate Term Fund

MFS Intermediate High Income Fund

Eaton Vance Short Duration Diversified Income Fund

PGIM Global High Yield Fund

PGIM High Yield Bond Fund

Nuveen Floating Rate Income Opportunity Fund ETF

Neuberger Berman High Yield Strategies Fund Inc

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

Pioneer Floating Rate Trust

Pioneer High Income Trust

PGIM Shrt Duratin Hgh Yld Opprtnts Fund

Invesco High Income Trust II

These are some options that I think you can buy today if you own the selling candidate. Some of the buy candidates on here I would even buy outright if I didn't own the "sell."

Some Relative CEF Value Trades And Opportunities

Rising rates would wreak havoc on most bond funds. Low duration bond funds would mostly be spared.

BLW: Corporate Bond Fund, Strong 7.0% Distribution Yield, Market-Beating Returns, Low Duration

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WisdomTree US Quality Dividend Growth Fund

Gladstone Investment

Main Street Capital

Realty Income Corp

PIMCO Dynamic Income Fund

John Hancock Premium Dividend Fund

Prudential Financial

SL Green Realty

STAG Industrial

VEREIT

My Top Ten Monthly Dividend Payers

Wells Fargo Multi-Sector Income Fund

Eaton Vance Limited Duration Income Fund

Franklin Limited Duration Income Trust

PCM Fund

Pimco High Income Fund

SPDR Bloomberg Short Term High Yield Bond ETF

We take a look at the Limited Duration CEF sector which offers one way for income investors to shorten up on their interest rate sensitivity. Investors seeking a higher income level as well as tactical investors on the lookout for cheaper discount valuations should consider BGH.

Limited Duration CEF Sector Update

Our objective for a sustainable income portfolio is high income combined with high confidence of capital preservation over a retiree's lifetime. With this entry the portfolio grows to six holdings.

BLW: Building A Sustainable Income Portfolio With Limited Duration, High-Yield Debt

Eaton Vance Senior Floating Rate Fund

MFS Multimarket Income Trust

Cohen & Steers Select Preferred and Income Fund

RiverNorth Opportunities Fund, Inc.

Just to be clear, these are not "buy" recommendations but considerations if you own the "sell" fund.

Some Potential Swaps To Consider (If You Own The Sell Fund)

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News for Blackrock Limited Duration Income Trust ETF (BLW)