FRA: Leveraged Loan Fund With A Macro Issue

BlackRock Floating Rate Income Strategies Fund (FRA) faces significant downside risk due to macro headwinds and internal fund dynamics. FRA's premium to NAV is unsustainable as peers trade at discounts and the fund lacks alpha versus competitors (VVR, JFR). Falling Fed Funds rates and tight credit spreads threaten leveraged loan yields, pressuring FRA's NAV and distribution sustainability.

Seeking Alpha • Oct 30, 2025

FRA: The Time Has Passed For This Floating Rate Income Fund

FRA offers high income via floating rate debt, but its golden era may be ending as interest rate cuts loom. The fund's distributions exceed earnings, raising the likelihood of a dividend cut to preserve NAV health. FRA trades at a rare premium to NAV, but inconsistent NAV growth and high default risks temper my enthusiasm.

Seeking Alpha • Aug 17, 2025

Get Paid 10%+ a Year? These Monthly Dividend Stocks Actually Deliver

Although double-digit yields were normal during the 1980s, lower interest rates and a robust stock market have rendered yields of 10% or higher obscure.

24/7 Wall Street • Jun 17, 2025

FRA: Net Asset Value Destruction Continues As The Fund Maintains Distributions

FRA offers a high yield (11.69%) but is overdistributing, causing net asset value destruction and threatening sustainability. The fund is trading at a premium to NAV, while most peers trade at discounts, making it relatively expensive given its risks. FRA's income will likely decline further as the Fed cuts rates, increasing the likelihood of a distribution cut and share price drop.

Seeking Alpha • Jun 2, 2025

FRA: Price Cannot Be Justified By Fundamentals

The BlackRock Floating Rate Income Strategies Fund offers an 11.64% yield but invests in riskier, floating-rate securities, making it vulnerable to interest rate cuts. The fund's recent performance has been disappointing, with a 7.34% total loss, underperforming both the S&P 500 and the Bloomberg U.S. Aggregate Bond Index. The market is expecting rate cuts going forward, and a recession could result in even larger cuts than expected.

Seeking Alpha • Mar 17, 2025

FRA: Sell This Fund Before It Cuts Its Distribution

The BlackRock Floating Rate Income Strategies Fund offers a 10.49% yield but is slightly below the median yield of similar funds, suggesting market confidence in its sustainability. The fund's share price increased by 4.27% despite declining portfolio income due to Federal Reserve rate cuts, raising concerns about future distribution sustainability. The coupon payments made by the fund's assets will decrease as the Federal Reserve continues to cut interest rates.

Seeking Alpha • Dec 26, 2024

Bonds Are in Turmoil Again. How to Protect Your Portfolio.

Consider shifting to areas of the market that are less sensitive to inflation expectations.

Barrons • Nov 8, 2024

These 10 Dividend Stocks Are Generating $520 In Dividend Income Every Month

According to

24/7 Wall Street • Nov 1, 2024

FRA: This Floating Rate Fund Is Overvalued, It Is Time To Sell Or Trim

The BlackRock Floating Rate Income Strategies Fund currently trades at a 4% premium. It has historically traded at a discount, making it less attractive now. FRA's income may decrease as the Fed is likely to lower short-term rates, impacting floating rate loans negatively. The possibility of a distribution cut could deter investors seeking high payouts, further reducing FRA's appeal.

Seeking Alpha • Oct 11, 2024

Don't Buy AI Stocks, Buy The Best Dividend Total Return Stocks

I have a diversified portfolio of stocks, funds, and bonds. My stocks are primarily dividend paying value stocks. One can find dividend stocks with superior estimated total returns by comparing their return drivers – earnings growth, dividend yield and valuation - to historic trends. This article compares the earnings growth, dividend yield, current valuation, and estimated future return of 53 stocks.

Seeking Alpha • Aug 1, 2024