BGT

BlackRock Floating Rate Income Trust is a closed-end management investment company that seeks high current income by investing primarily in floating rate loans and other floating rate debt securities. Managed by BlackRock Advisors, LLC, the fund provides investors with exposure to the senior secured loan market, where interest rates adjust periodically based on a reference rate (typically SOFR or similar benchmarks) plus a spread. This floating rate feature makes the fund less sensitive to interest rate increases compared to fixed-rate bond funds, providing protection when rates rise. The fund's portfolio consists primarily of senior secured loans issued by below-investment-grade (leveraged) companies across diverse industries. These loans typically have senior claims on borrower assets and are secured by collateral, providing structural protection compared to unsecured bonds. The floating rate nature means that as short-term interest rates increase, the income generated by the portfolio rises, offering a natural hedge against rising rate environments. Conversely, in declining rate scenarios, income may decrease. BlackRock's experienced credit team conducts fundamental analysis to select loans with appropriate risk-return profiles. As a closed-end fund, BlackRock Floating Rate Income Trust trades on exchanges at prices that may differ from its net asset value (NAV). The fund employs leverage through borrowings or other financial instruments to enhance returns and income generation, though leverage increases risk. The trust provides monthly distributions to shareholders, with income levels varying based on prevailing interest rates and credit spreads. The fund appeals to income-focused investors seeking protection from rising interest rates, senior secured credit exposure, and professional loan market access. Performance depends on credit spreads, default rates, interest rate movements, and overall leveraged loan market conditions. The floating rate feature and senior secured status provide defensive characteristics compared to traditional fixed-rate high-yield bonds.