BlackRock Core Bond Trust (BHK) Offers Recession-Resilient Income Amidst Destructive Distributions

Thursday, Mar 27, 2025 11:43 am ET1min read

The BlackRock Core Bond Trust (NYSE:BHK) is a closed-end fund that seeks to generate high current income from its assets. While it could perform well in a recession, the fund's destructive distributions are a concern. Destructive distributions occur when a CEF sells more shares than it has outstanding, diluting existing shareholders' stakes and negatively impacting the fund's net asset value. Investors should be cautious of this issue when considering BHK.

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