BlackRock Debuts High Yield Municipal Interval Fund
BlackRock has unveiled the BlackRock Municipal Credit Alpha Portfolio (MUNEX), an interval fund targeting municipal securities and offering a 5.75% tax-exempt yield. With an initial asset base of about $565 million, the fund debuts as one of the most substantial municipal interval funds available.
The interval fund structure allows BlackRock’s team to target niche segments of the high yield market, such as special situations, while holding more significant stakes in high-conviction investments than typical high yield municipal funds permit. Leveraging BlackRock’s deep expertise in municipal bonds, the fund draws on a robust foundation of $182 billion in municipal bond assets and the insights of a 59-member investment team.
“We think that the interval fund structure is the best way to take advantage of inefficiencies in the high yield market, from both a yield and total return perspective,” said Patrick Haskell, head of BlackRock’s municipal bond group.