Blackrock Debt Strategies Fund Inc

BlackRock Debt Strategies Fund, Inc. is a diversified, closed-end management investment company. Its investment objective is to provide current income by investing primarily in a diversified portfolio of US companies' debt instruments, including corporate loans. The fund’s secondary objective is to provide capital appreciation. The company was founded in 1997 and is headquartered in Wilmington, DE.

The BlackRock Debt Strategies Fund offers a high yield of 10.72%, but its income may decline as the Federal Reserve cuts interest rates. The fund's recent performance has lagged behind major bond indices, but its high yield has attracted income-focused investors. The fund's heavy allocation to floating-rate loans means its income will drop with falling interest rates, likely leading to a distribution cut.

DSU: This Fund Will Have To Cut Its Distribution, But It Might Still Be Attractive

BlackRock Debt Strategies is continuing to benefit from the "higher for longer" rate environment, moving from a wide discount to a premium. Despite rate cut expectations, DSU may continue to offer attractive yields with expectations that we don't go back to a zero-rate environment. DSU's distribution yield is 10.90%, but we should monitor coverage as they will require some capital gains to achieve this payout.

DSU: Rate Cuts Projected, But This CEF Can Still Deliver An Attractive Yield

BlackRock Debt Strategies Fund has recovered well from the 2022 bond market selloff, outperforming benchmarks and peers. DSU is well positioned for high-interest rates, with distributions covered by interest income, a diversified portfolio, and protection against interest rate changes. DSU has shown solid returns over time, outperforming benchmarks and peers, with distributions primarily driven by investment income.

DSU: A Senior Loan CEF With Solid Performance And Well-Covered Distributions

Calamos Dynamic Convertible & Income Fund

First Trust High Yld Oprtnts 2027 Tr Fn

Hannon Armstrong Sustainable Infrastructure Capital

PGIM High Yield Bond Fund

Nuveen Real Asset Income & Growth Fund

For those many Americans who are feeling the squeeze but still want that $5.25 Tall Mocha from Starbucks, the only answers are to cut spending elsewhere or to augment income. The latter can be had by active means, i.e., a second job or side hustle, or via passive means, such as letting the money you have work for you. For those looking at the passive income route, dividend stocks are a worthwhile consideration.

Want $250 Per Month In Passive Income? Invest In These Stocks

The BlackRock Debt Strategies Fund offers a high level of income with a 10.64% yield, in line with other funds investing in fixed-rate and floating-rate debt securities. The fund's allocation to floating-rate securities and its ability to navigate interest rate movements make it attractive in a rising rate environment. The fund's distribution history has been variable, but it does appear that it can sustain it as long as interest rates remain at today's levels or increase.

DSU: This Dynamic Credit Fund Is Positioned For 'Higher For Longer'

BlackRock Taxable Municipal Bond Trust

BlackRock Enhanced Equity Dividend Trust

BlackRock Floating Rate Income Trust

Morgan Stanley China A Share Fund Inc

Eaton Vance Municipal Income 2028 Term Trust

First Trust Mortgage Income Fund

Blackrock Floating Rate Income Strategies Fund Inc

Templeton Global Income Fund

Western Asset High Income Fund

Western Asset High Yield Defined Opportunity Fund Inc

Western Asset Investment Grade Defined Opportunity Trust

Nuveen Mortgage Opportunity Term Fund

Deutsche Municipal Income Trust

Morgan Stanley Emerging Markets Debt Fund

Nuveen Municipal Credit Opportunities Fund

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

PIMCO Access Income Fund

Putnam High Income Securities Fund

PIMCO Income Strategy Fund II

Franklin Templeton Emerging Markets Income Fund

Stocks were up slightly as the jobs report shifted the narrative towards 'higher for longer.' The payroll report came in stronger than expected, but the narrative was that it was a hawkish report, meaning higher rates for longer. Discounts for CEFs continue to tread water, with real estate and interest rate-sensitive bond sectors performing well, while emerging market equity and convertibles performed poorly.

CEF Weekly Commentary | December 10, 2023 | High Quality Opportunities

BlackRock Debt Strategies Fund Inc offers a high level of income with a current distribution yield of 11.32%. The DSU closed-end fund has delivered a strong total return of 7.77% since the last article was published, outperforming major stock and bond market indices. The fund's portfolio consists mainly of floating-rate debt securities, which may not benefit as much from price appreciation in a declining interest rate environment.

DSU: Stable Assets Despite Recent Market Action In The Shares

BlackRock Debt Strategies Fund is a compelling choice for investors looking to diversify their fixed income portfolios. Rising rate environments favor low duration debt, and the Fed has signaled that rates may stay "higher for longer." This is a good headwind for bank loans. DSU's active management strategy allows for flexibility and responsiveness to markets and macroeconomic changes.

DSU: A CEF Opportunity For Income Investors To Diversify Their Fixed Income Portfolios

The rising cost of living in the U.S. is a major problem, with inflation affecting food and energy prices. Investing in closed-end funds that specialize in generating income can help increase income to maintain your standard of living. The BlackRock Debt Strategies Fund Inc offers a high yield of 10.85% by investing in a portfolio of fixed-rate and floating-rate debt.

DSU: This 10.85%-Yielding CEF Makes A Lot Of Sense For Income Investors Today

Nuveen Municipal Income Fund Inc

We review CEF market valuation and performance through the first week of July and highlight recent market action. CEFs were roughly flat on the week as NAVs fell while discounts remained resilient. CEF discounts tend to be procyclical, which remains an odd but welcome feature of the CEF market.

CEF Weekly Review: Discount Pro-Cyclicality Is Not Fully Rational

Investors are in desperate need of income as portfolios have shrunk over the past eighteen months while prices of goods and services have gone up. DSU invests in a portfolio of fixed-rate and floating-rate debt in an attempt to provide its investors with an incredibly high level of income.

DSU: This Fully-Covered Debt Fund Is Worth Your Consideration

BlackRock Debt Strategies Fund is a fixed-income CEF. The fund focuses on leveraged loans, which compose over 80% of the collateral.

DSU: Revisiting A Fully Covered 8.5% Dividend From A BlackRock CEF

Rising interest rates have been pushing down the market but not all assets are negatively affected by rising rates. DSU invests in both high-yield debt and corporate loans, the latter of which should hold their value in a rising-rate environment.

DSU: This Fund Is Raising Its 9.22% Distribution And Trades At A Huge Discount

Apollo Senior Floating Rate Fund

Apollo Tactical Income Fund, Inc.

John Hancock Financial Opportunities Fund

Eaton Vance

Macquarie Global Infrastructure Total Return Fund Inc

Special Opportunities Fund Inc

Cohen & Steers Infrastructure Fund Inc

Reaves Utility Income Fund

Invesco Senior Income Trust

Credit asset classes (corporate loans, high yield bonds, etc.) pay investors interest (i.e. real cash). So even when all assets (stocks, bonds, etc.) are dropping in price, funds that hold credit assets keep cranking out the cash to pay distributions.

Choosing Closed-End Credit Funds Over Equity Funds: Collecting Real Cash Vs. 'Eating Your Seed Corn'

Loan funds have seen consistent outflows, setting up a contrarian play. DSU in particular piques my interest because it has a steep discount to NAV. This discount is wider than what similar funds from BlackRock are offering at their market prices.

DSU: Reaching For Yield The Contrarian Way

Flaherty & Crumrine Dynamic Preferred & Income Fund

Flaherty & Crumrine Total Return Fund Inc

John Hancock Preferred Income Fund

PIMCO Income Strategy Fund

Pimco New York Municipal Income Fund II

Pimco New York Municipal Income Fund III

Recent market volatility has opened up discount valuation divergences between very similar CEFs.

Pick Up Yield In These CEF Relative Value Switches

DSU is a fixed income CEF offering from BlackRock that focuses on leveraged loans and high-yield bonds.

DSU - Leveraged Loan CEF From BlackRock, ~7% Yield

Virtus AllianzGI Diversified Income & Convertible Fund

ArrowMark Financial

Saba Capital Income & Opportunities Fund

China Fund

Aberdeen Global Income Fund

New Germany Fund

Gabelli Multimedia Trust

Clough Global Opportunities Fund

Clough Global Equity Fund

BlackRock Corporate High Yield Fund

Insight Select Income Fund

New Ireland Fund Inc

Madison Fund

BlackRock MuniAssets Fund

BlackRock MuniHoldings Quality Fund II Inc

Pimco California Municipal Income Fund

RENN Fund

TCW Strategic Income Fund

20 out of 24 CEF sectors positive on price and 14 out of 24 sectors positive on NAV last week. It's pretty quiet in CEF-land, fund managers need holidays too. MLPs remain the most discounted sector.

Weekly Closed-End Fund Roundup: December 26, 2021

Aberdeen Income Credit Strategies Fund

Alpine Total Dynamic Dividend Fund

Ares Dynamic Credit Allocation Fund

Barings Global Short Duration High Yield Fund

Blackstone Long-Short Credit Income Fund

Credit Suisse Asset Management Income Fund

Doubleline Opportunistic Credit Fund

DoubleLine Income Solutions Fund

Allspring Income Opportunities Fund

Eagle Point Credit

Western Asset Global High Income Fund

Western Asset Emerging Markets Debt Fund

First Trust MLP & Energy Income Fund

First Trust New Opportunities Mlp & Energy Fund

PGIM Global High Yield Fund

Pioneer Diversified High Income Trust

Pioneer Floating Rate Trust

Pioneer High Income Trust

Only funds with yields over 6.50%, coverage higher than 80% and trading at under a +5% premium are considered. Top lists of discount, yield, DxY and DxYxZ are given.

The 'High-High-Low' Closed-End Fund Report, July 2021

Blackstone Strategic Credit Fund

Blackstone/GSO Senior Floating Rate Term Fund

Eagle Point Credit Company Inc 7.75 % Pfd Registered Shs 2016-30.10.26 Series B

Eagle Point Credit Company Inc - 6.6875% NT REDEEM 30/04/2028 USD 25

Eagle Point Cr 6.75 % Notes 2017-30.09.27

Highland Income Fund

Nuveen Floating Rate Income Fund

Nuveen Credit Strategies Income Fund

Nuveen Floating Rate Income Opportunity Fund ETF

Nuveen Short Duration Credit Opportunities Fund

Nuveen Senior Income Fund

Oxford Lane Capital

Oxford Lane Capital Corp 6.75 % Cum Red Pfd Shs Series -2024-

Oxford Lane Capital Corp 7 1/2 % Term Cum Pfd Shs Series -2023-

Invesco Dynamic Credit Opportunities Fund

Closed-End Funds: Senior Loan Funds Revisited

Senior loan funds are showing some opportunities at some deep discounts. These funds should benefit from increasing interest rates, but that could be years before playing out.

News for Blackrock Debt Strategies Fund Inc ETF (DSU)