BlackRock Debt Strategies Fund

DSU

Market cap $592M

Overview Fund Activity

10.62 USD

+0.04

0.38%

At close Updated Sep 12, 4:00 PM EDT

1 day

0.38%

5 days

0.47%

1 month

0.57%

3 months

0.47%

6 months

0%

Year to date

-2.12%

1 year

-3.89%

5 years

5.78%

10 years

2.31%

About: Blackrock Debt Strategies Fund Inc is a diversified, closed-end management investment company. Its investment objective is to provide current income by investing in a diversified portfolio of U.S. companies' debt instruments including corporate loans. The fund's secondary investment objective is to provide capital appreciation.

Financials Asset Management

0

Funds holding %

of 7,462 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

83% more first-time investments, than exits

New positions opened: 11 | Existing positions closed: 6

4% more funds holding

Funds holding: 85 [Q1] → 88 (+3) [Q2]

1.08% more ownership

Funds ownership: 24.54% [Q1] → 25.62% (+1.08%) [Q2]

4% more capital invested

Capital invested by funds: $121M [Q1] → $126M (+$4.7M) [Q2]

3% more repeat investments, than reductions

Existing positions increased: 30 | Existing positions reduced: 29

0% more funds holding in top 10

Funds holding in top 10: 1 [Q1] → 1 (+0) [Q2]

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Financial journalist opinion

DSU Can Be An Opportunistic Strategy During Periods Of Economic Uncertainty

DSU offers a diversified high-yield debt portfolio with an attractive 11.15% yield, primarily invested in US term loans and industrials sector bonds. The fund's risk is mitigated by diversification across 1,250 issuances, but investors should be aware of high-yield credit risks and potential economic headwinds. Current economic uncertainty and anticipated Fed rate cuts create a favorable environment for high-yield strategies like DSU.

DSU Can Be An Opportunistic Strategy During Periods Of Economic Uncertainty

DSU: This Floating-Rate Heavy Fund Is Not Worth The Premium

BlackRock Debt Strategies Fund offers a high yield, but its distribution is unsustainable due to declining income from expected Fed rate cuts. DSU's net asset value is falling, and it has failed to cover its distribution from investment income or capital gains, signaling a likely payout cut. The fund trades at a premium compared to peers, making it expensive, especially given the high risk of a near-term distribution reduction.

DSU: This Floating-Rate Heavy Fund Is Not Worth The Premium

The Motley Fool

Investing $60,000 in These 3 Funds Could Generate Annual Income of Over $6,500

Income investors could pay attention to the price fluctuations of the assets they own. But they don't have to.

Investing $60,000 in These 3 Funds Could Generate Annual Income of Over $6,500

DSU: Consistent Performer But Questionable Dividend Coverage

BlackRock Debt Strategies Fund (DSU) offers a high dividend yield of 12.3%, making it attractive for income-seeking investors despite a 12.87% price decline over the past decade. DSU's strategy includes diversified debt investments, leveraging 15.43% of assets, and focusing on sectors like Technology, Capital Goods, and Consumer Cyclical, which comprise nearly 50% of the portfolio. The fund's net investment income has increased due to higher interest rates, but inconsistent net realized gains and reliance on below investment-grade debt pose risks.

DSU: Consistent Performer But Questionable Dividend Coverage

DSU: Wait For Discount To NAV Before Buying

The BlackRock Debt Strategies Fund has a long history of delivering solid results for shareholders. DSU's management fee of 0.70% is reasonable compared to similar bank loan-focused funds and CEFs. DSU's low leverage ratio of 15.5% is a positive, suggesting management adjusts leverage based on market conditions, unlike many other CEFs.

DSU: Wait For Discount To NAV Before Buying

The Motley Fool

Investing $10,000 in Each of These 5 Closed-End Funds Could Make You Over $4,700 in Passive Income in 2025

What's a way to generate significant passive income that many investors don't know about? Closed-end funds (CEFs).

Investing $10,000 in Each of These 5 Closed-End Funds Could Make You Over $4,700 in Passive Income in 2025

DSU: This Fund Will Have To Cut Its Distribution, But It Might Still Be Attractive

The BlackRock Debt Strategies Fund offers a high yield of 10.72%, but its income may decline as the Federal Reserve cuts interest rates. The fund's recent performance has lagged behind major bond indices, but its high yield has attracted income-focused investors. The fund's heavy allocation to floating-rate loans means its income will drop with falling interest rates, likely leading to a distribution cut.

DSU: This Fund Will Have To Cut Its Distribution, But It Might Still Be Attractive

DSU: Rate Cuts Projected, But This CEF Can Still Deliver An Attractive Yield

BlackRock Debt Strategies is continuing to benefit from the "higher for longer" rate environment, moving from a wide discount to a premium. Despite rate cut expectations, DSU may continue to offer attractive yields with expectations that we don't go back to a zero-rate environment. DSU's distribution yield is 10.90%, but we should monitor coverage as they will require some capital gains to achieve this payout.

DSU: Rate Cuts Projected, But This CEF Can Still Deliver An Attractive Yield

DSU: A Senior Loan CEF With Solid Performance And Well-Covered Distributions

BlackRock Debt Strategies Fund has recovered well from the 2022 bond market selloff, outperforming benchmarks and peers. DSU is well positioned for high-interest rates, with distributions covered by interest income, a diversified portfolio, and protection against interest rate changes. DSU has shown solid returns over time, outperforming benchmarks and peers, with distributions primarily driven by investment income.

DSU: A Senior Loan CEF With Solid Performance And Well-Covered Distributions

Distribution Dates and Amounts Announced for Certain BlackRock Closed-End Funds

NEW YORK--(BUSINESS WIRE)---- $BBN--Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below. Certain BlackRock Funds previously declared their June distributions on May 20, 2024 BlackRock ESG Capital Allocation Term Trust (NYSE: ECAT), BlackRock Capital Allocation Term Trust (NYSE: BCAT), BlackRock Health Sciences Term Trust (NYSE: BMEZ), BlackRock Science and Technology Term Trust (NYSE: BSTZ), and BlackRock Innovation and Growth Term Trust (NYSE: BIGZ) previous.

Distribution Dates and Amounts Announced for Certain BlackRock Closed-End Funds

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