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Posted by
Two Blokes May 19 -
Filed in
Stock
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2 views
BlackRock Health Sciences Term Trust's discount to NAV has narrowed sharply, eroding the original deep-value thesis and making the risk/reward profile less attractive. BlackRock's tender offer and increased distributions successfully closed the discount, but future activist pressure is now limited due to Saba's standstill agreement. The fund's high 14% yield is appealing but unsustainable, as it relies on return of capital rather than underlying earnings, especially in biotech.
