BlackRock Municipal Income Trust II Sees 50.6% Surge in Short Interest

BlackRock Municipal Income Trust II (NYSE: BLE) experienced a significant rise in short interest during September 2023, with the total short interest reaching 53,300 shares by September 30. This represents a remarkable increase of 50.6% from the 35,400 shares reported on September 15. The current short-interest ratio stands at 0.5 days, based on an average trading volume of 104,000 shares.

Institutional Activity in BlackRock Municipal Income Trust II

Recent activity among institutional investors and hedge funds indicates a heightened interest in BlackRock Municipal Income Trust II. Notably, Karpus Management Inc. increased its stake by 8.5% in the second quarter, acquiring an additional 334,809 shares to bring its total holdings to 4,287,798 shares, valued at approximately $43.05 million.

Mackay Shields LLC also made a substantial move, boosting its position by 63.2% during the same period. The firm now holds 577,670 shares, worth around $5.8 million, after purchasing an additional 223,646 shares. Additionally, Park Avenue Securities LLC and Cary Street Partners Financial LLC entered new positions in BlackRock Municipal Income Trust II, committing $1.17 million and $1.12 million respectively during the second quarter. Advisors Asset Management Inc. enhanced its position by 40.8% in the first quarter, owning 195,668 shares valued at $2.03 million after acquiring 56,656 shares.

Market Performance and Dividend Announcements

As of Thursday, October 5, 2023, BlackRock Municipal Income Trust II opened at $10.52. Over recent months, the company has demonstrated stability with a 50-day simple moving average of $10.24 and a two-hundred day simple moving average of $10.03. The trust has recorded a one-year low of $9.56 and a high of $11.12.

The fund, launched by BlackRock, Inc., operates as a closed-end fixed income mutual fund managed by BlackRock Advisors, LLC. It invests primarily in investment-grade municipal bonds that are exempt from federal income tax, focusing on both long-term and short-term investments, as well as money market funds.

In a related announcement, BlackRock Municipal Income Trust II revealed upcoming dividend distributions, aiming to provide value to its investors and affirming its commitment to long-term financial strategies.

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