BlackRock Credit Allocation Income Trust: Upgrade to Fair Value

The BlackRock Credit Allocation Income Trust (BTZ) has been upgraded to fair value from a sell rating. The fund focuses on investment-grade debt, mostly corporate bonds. We highlighted BTZ's high yield and relatively low expense ratio in our previous article. However, we assigned a sell rating due to its high leverage and low distribution coverage. Despite this, BTZ's strong credit quality and high yield make it a viable investment option for those seeking income.