Shaker Financial Exits BlackRock Corporate High Yield Fund
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy HYT?
Source: Fool
- Complete Exit: On January 26, 2026, Shaker Financial Services disclosed in an SEC filing that it sold its entire position of 362,415 shares in the BlackRock Corporate High Yield Fund, valued at approximately $3.44 million, indicating a significant reduction in confidence in this investment.
- Impact on AUM: This transaction resulted in a $3.44 million decline in HYT's position value for the quarter, reflecting that it now represents none of Shaker's 13F assets under management, highlighting its diminished importance in the firm's portfolio.
- Fund Performance Analysis: As of January 23, 2026, HYT shares were priced at $8.91, up 0.1% over the past year, but underperformed the S&P 500 by 12.9 percentage points, indicating a lack of competitive strength in the market.
- Yield vs. Risk Trade-off: With an annualized dividend yield of 10.4%, HYT attracts income-seeking investors; however, its historical total return of only 29% and a compound annual growth rate of 5.2% suggest that high yields come with significant price depreciation risks.
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Analyst Views on HYT
Wall Street analysts forecast HYT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HYT is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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0 Sell
Current: 8.800
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Current: 8.800
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About HYT
BlackRock Corporate High Yield Fund, Inc. (the Trust) is a diversified, closed-end management investment company. The Trust's primary investment objective is to provide shareholders with current income. Its secondary investment objective is to provide shareholders with capital appreciation. The Trust seeks to achieve its objectives by investing primarily in a diversified portfolio of fixed income securities which are rated at the time of investment to be below investment grade or, if unrated, are considered by the investment adviser to be of comparable quality. It may invest directly in fixed income securities or synthetically through the use of derivatives. It invests at least 80% of its net assets (including assets acquired from the sale of preferred stock), plus the amount of any borrowings for investment purposes, in high yield securities, including high yield bonds, corporate loans, convertible debt securities and preferred securities. Its manager is BlackRock Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Shaker Financial Exits BlackRock Corporate High Yield Fund
- Complete Exit: On January 26, 2026, Shaker Financial Services disclosed in an SEC filing that it sold its entire position of 362,415 shares in the BlackRock Corporate High Yield Fund, valued at approximately $3.44 million, indicating a significant reduction in confidence in this investment.
- Impact on AUM: This transaction resulted in a $3.44 million decline in HYT's position value for the quarter, reflecting that it now represents none of Shaker's 13F assets under management, highlighting its diminished importance in the firm's portfolio.
- Fund Performance Analysis: As of January 23, 2026, HYT shares were priced at $8.91, up 0.1% over the past year, but underperformed the S&P 500 by 12.9 percentage points, indicating a lack of competitive strength in the market.
- Yield vs. Risk Trade-off: With an annualized dividend yield of 10.4%, HYT attracts income-seeking investors; however, its historical total return of only 29% and a compound annual growth rate of 5.2% suggest that high yields come with significant price depreciation risks.
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- Strong HYT Performance: The BlackRock Corporate High Yield Fund (HYT) currently yields 10.6% and has raised its payouts by approximately 11% over the past decade, outperforming the SPDR Bloomberg High Yield Bond ETF (JNK), highlighting its attractiveness in the current market.
- Market Opportunity Emerges: HYT's discount to net asset value has dropped to levels not seen since 2022 and 2023, indicating a potential for price recovery in the short term, allowing investors to capitalize on this value investment opportunity.
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- Private Credit Sector: The emergence of private credit "cockroaches" indicates a shift in the market, particularly affecting the software sector.
- Investment Opportunities: This situation may present new investment opportunities in shares of business development companies that hold the debt of these affected companies.
See More
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- Private Credit Sector: The private credit sector is facing challenges, likened to "cockroaches" emerging from the software industry.
- Opportunities in Business Development Companies: This situation may present investment opportunities in business development companies that hold the debt of affected firms.
See More
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- Distribution Amounts Announced: BlackRock's various funds announced per-share distributions for January 30, 2026, with BCX at $0.0697 and BME at $0.2621, reflecting the company's ongoing commitment to stable income distribution.
- Managed Distribution Plan: All funds have adopted a managed distribution plan to ensure monthly distributions of income, capital gains, or return of capital, aimed at providing investors with consistent cash flow and enhancing investor confidence.
- Transparent Sources of Income: As of January 30, 2026, the sources of distributions for each fund include net income and return of capital, with 76% of BCX's distribution coming from capital return, indicating a diverse income structure.
- Long-term Investment Strategy: The distribution plans of BlackRock funds are expected to exceed current income and capital gains, potentially including return of capital, demonstrating the company's strategic flexibility in managing market volatility and maintaining investor returns.
See More
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BlackRock Closes End Funds: BlackRock has announced the closure of certain end funds, indicating a strategic shift in their investment approach.
Estimated Sources of Distributions: The announcement includes details on the estimated sources of distributions for the affected funds, providing transparency to investors.
See More
Shaker Financial Exits BlackRock Corporate High Yield Fund
- Complete Exit: On January 26, 2026, Shaker Financial Services disclosed in an SEC filing that it sold its entire position of 362,415 shares in the BlackRock Corporate High Yield Fund, valued at approximately $3.44 million, indicating a significant reduction in confidence in this investment.
- Impact on AUM: This transaction resulted in a $3.44 million decline in HYT's position value for the quarter, reflecting that it now represents none of Shaker's 13F assets under management, highlighting its diminished importance in the firm's portfolio.
- Fund Performance Analysis: As of January 23, 2026, HYT shares were priced at $8.91, up 0.1% over the past year, but underperformed the S&P 500 by 12.9 percentage points, indicating a lack of competitive strength in the market.
- Yield vs. Risk Trade-off: With an annualized dividend yield of 10.4%, HYT attracts income-seeking investors; however, its historical total return of only 29% and a compound annual growth rate of 5.2% suggest that high yields come with significant price depreciation risks.
See More
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- Stable Bond Market: According to Coatue Management, the growth in debt issuances for the tech, media, and telecom sectors from 2023 to 2025 is only 0%, 3%, and 9%, indicating that fears of an AI bubble may be overstated, thus providing investors with relatively safe bond investment opportunities.
- Strong HYT Performance: The BlackRock Corporate High Yield Fund (HYT) currently yields 10.6% and has raised its payouts by approximately 11% over the past decade, outperforming the SPDR Bloomberg High Yield Bond ETF (JNK), highlighting its attractiveness in the current market.
- Market Opportunity Emerges: HYT's discount to net asset value has dropped to levels not seen since 2022 and 2023, indicating a potential for price recovery in the short term, allowing investors to capitalize on this value investment opportunity.
- Fading AI Bubble Concerns: As fears of an AI bubble diminish, the reduced demand for corporate bonds has made funds like HYT relatively cheap, enabling investors to position themselves ahead of future market volatility that could drive demand for these bonds.
See More
