BlackRock Corporate High Yield Fund (HYT)
There’s no denying that BlackRock (BLK) is powerhouse when it comes to asset management. That fact extends into its CEF offerings as well. The asset manager recently merged several of its CEFs into one entity — the BlackRock Corporate High Yield Fund (HYT). The resulting new fund features a four-star and bronze rating from Morningstar.
Unlike MMT, HYT’s underlying portfolio strictly focuses on corporate bonds from lower -rated companies. While there is some leeway on what type of bonds it can choose from, HYT is very much a junk bond fund, and the bulk of its assets are in traditional high-yield bonds. Not that there’s anything wrong with that. HYT has managed to produce a 9.19% annual return since its inception in 2003.
Currently, HYT can be bought for a 7.11% discount to its NAV, and it comes with a solid 7.86% distribution yield.