BLW: History Of Preserving Investor Capital But Weak Dividend Coverage

BlackRock Limited Duration Income (BLW) offers a high 9.6% yield and monthly payouts, appealing for income-focused investors seeking market volatility hedges. BLW's portfolio is diversified across floating-rate and high-yield assets, but relies heavily on leverage and below-investment-grade securities, increasing risk. The fund's share price is sensitive to interest rate changes; anticipated rate cuts could boost BLW's valuation and support its buy rating.

Seeking Alpha • Sep 14, 2025

BLW: A Good Option For Debt Exposure If The Price Falls

BLW offers high income from low-duration fixed-income assets, providing better inflation protection than long-term bonds in today's challenging bond market. The fund's 9.77% yield is attractive, but its current distribution is not fully covered by investment income, raising concerns about sustainability. The fund is primarily invested in junk bonds and floaters, and it is unclear whether floaters will be able to deliver a positive real return over the long term.

Seeking Alpha • Jun 18, 2025

Profit From Wider Credit Spreads With These High-Yield Bond Funds

The ongoing trade war has led to a massive increase in uncertainty and bearish sentiment. Credit spreads have widened as a result, going from their lowest levels in history, to solidly above-average. Investing in high-yield corporate bond funds seems like an easy way to profit from these changes.

Seeking Alpha • Apr 27, 2025

BLW: Too Expensive, Too Leveraged (Rating Downgrade)

BlackRock Limited Duration Income Trust is a fixed-income CEF with a 50/50 split between leveraged loans and high yield bonds, and a high leverage ratio of 39%. Currently trading at a premium to NAV, which is unusual and suggests overvaluation; historically, it has traded at a discount. Credit spreads are at decade lows, indicating an overbought market for high yield and a poor entry point for BLW.

Seeking Alpha • Feb 21, 2025

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

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.

Seeking Alpha • Dec 6, 2024

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

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.

Seeking Alpha • Sep 1, 2024

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

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.

Seeking Alpha • Apr 25, 2024

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

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.

Seeking Alpha • Jan 8, 2024

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

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.

Seeking Alpha • Oct 23, 2023

BLW: Silently Outperforming Due To Its Low Duration

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.

Seeking Alpha • Oct 6, 2023