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Strategies & Market Trends : Young and Older Folk Portfolio
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From: chowder10/15/2025 4:11:02 PM
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Most of the action today was done in my personal portfolio. Nick over at Stanford Chemist put out a note on BGB which I held as an overweight position. BGB is the type of fund that does well when interest rates are rising, thus my high exposure. Now that rates are expected to come down, I expect distributions to follow.

BGB is a Term Fund which is expected to dissolve in 2027 anyway unless they change the structure, so out it went.

Below is a Summary Nick provided:

Summary
  • Blackstone Strategic Credit 2027 Term Fund (BGB) offers a term structure with potential liquidation in September 2027, currently trading at a -4.87% discount.
  • BGB's discount has widened recently due to credit events like First Brands' bankruptcy, but overall exposure to such events remains minimal due to strong diversification.
  • Distribution yield is 7.86%, but payouts are likely to decrease as the Fed cuts rates, while reducing borrowing costs, but the reduction is offset by lower underlying yields.
  • BGB's term structure may provide a floor for the discount, but risks remain if the term is extended or eliminated; tactical investors should closely monitor developments.
I did need to replace the income that was lost as a result of this sale, but the yield was low for a CEF and I ended up with more income after the following moves.

I opened a new position in AGD with its 11.90% yield. I also added to the following CEF's:

BRW .... 13.49% yield
NXG ..... 12.95% yield
SPE ...... 8.56% yield

The income from these assets allowed me to spread out the remaining cash, and add to a number of equities, as I build that portion of the portfolio.

I added to:

VZ .. MO .. O .. PRU .. KMB .. PEP .. PAYX .. DUK .. SO .. PG .. ABBV.
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