Blackstone/GSO Strategic Credit Fund (BGB) Stock

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The Blackstone Strategic Credit 2027 Term Fund has continued to perform strongly and is now experiencing smaller discounts. BGB is benefiting from higher inflation and a strong economy, reducing the likelihood of rate cuts by the Fed. With a distribution yield of around 9.5% and a diverse portfolio of senior secured loan securities, the Fund remains an appealing option.

The Blackstone Strategic Credit 2027 Term Fund offers a current distribution yield of 11.08%, comparable to other fixed-income funds. The fund has outperformed the broader bond market, with a 3.37% increase in shares compared to a 1.47% decline in the Bloomberg US Aggregate Bond Index. The fund primarily invests in floating-rate senior loans and high-yield junk bonds, which provide stability and potential income growth in a rising interest rate environment.

We review CEF market valuation and performance through the third week of September and highlight recent market action. Most sectors saw NAV gains, but discounts widened, particularly in the Covered Call and Equity sectors. Invesco trimmed distributions on many CEFs including IHIT, potentially indicating a termination of this CMBS 2023 term fund.