February continued the strong start to the year for the Income Bucket strategy. After January returned to a more normalized income profile following year-end timing effects, February’s results reflected both the steady income generation of the core holdings and additional income contributions from structured investments.
Based on the latest portfolio data, the Income Bucket produced an annualized yield of 15.21% for February.
As always, the goal of the strategy is not to chase the highest yield in any single month, but rather to build diversified, repeatable income streams across multiple asset classes.
Private Real Estate
Private real estate remains one of the core anchors of the income bucket. These investments provide relatively stable distributions tied to underlying real estate cash flows.
The portfolio currently holds:
- BREIT1 (Blackstone Real Estate Income Trust)
- GCREIT2 (Nuveen Global Cities REIT)
Both funds continue to generate steady monthly income supported by diversified portfolios of institutional-quality properties.
BREIT remains heavily concentrated in sectors such as Multi-family housing, industrial, and data centers, which represent roughly 63% of its real estate exposure.
GCREIT similarly focuses on diversified global commercial real estate with exposure across sectors like industrial, healthcare, multifamily, and grocery-anchored retail, with properties spread across the U.S., Europe, and Asia-Pacific.
These holdings provide a foundation of relatively consistent income within the portfolio.
Private Credit Income
Private credit continues to be a major contributor to portfolio income.
Current holdings include:
- BCRED3 (Blackstone Private Credit Fund)
- OCIC5 (Blue Owl Credit Income Company)
- CTAC4 (Carlyle Tactical Private Credit Fund)
Private credit strategies typically focus on senior secured floating-rate loans, which can provide attractive income while also benefiting from higher interest rate environments.
For example, BCRED currently maintains an annualized distribution rate 9.7% for Class I shares, supported primarily by senior secured loans.
These credit investments provide a significant portion of the portfolio’s baseline income.
ETFs
The ETF sleeve continues to be a great contributor to yield and most of these have tax advantages inside taxable accounts. Current holdings include QQQI7, CAIE8, CAIQ9, and PCMM6.
Three of the four funds had yields above 14% in February. This was done with different methods, one being and option overlay strategy and the other 2 being a structured note strategy. Both driven by the volatility in the markets.
This sleeve remains an important component of the Income Bucket by:
- smoothing income over time
- providing diversified income sources
- allowing for tactical flexibility when conditions change
Structured Income Notes
Structured investments are another important component of the Income Bucket strategy. These notes are typically linked to major equity indices and are designed to generate income through good and bad times. Because these trade as fixed income investments, they have set maturities, set call dates, and set a yield.
Changes in February 2026:
- Only 2 income notes worth 88K were called during the month. Goldman Sachs and BNP called notes this month.
- An example of a new note this month is from BNP, structured as a 2-year, with a 1-year no-call period and a 17.75% annualized yield
Because notes are called or mature regularly, this remains the most active of the managed income sleeves.
Closing Thoughts
February’s 15.21% annualized yield reflects the combined contributions of all four income sleeves working together.
Importantly, month-to-month income levels can fluctuate depending on:
- distribution timing
- structured note payouts
- ETF distribution schedules
- private fund distributions
For that reason, the Income Bucket strategy is designed with multiple independent income sources, helping smooth income over time rather than relying on a single asset class.
The focus remains on building durable cash flow across market cycles, not simply maximizing yield in any single month.
If you’d like to review how your income strategy is positioned or see how these results fit into your broader plan, I’m always happy to help. For more insights on how these strategies can support your goals, visit the 9M Investments and get a free assessment.
1. https://www.breit.com/performance/
2. https://www.nuveen.com/gcreit/performance
3. https://www.bcred.com/performance
4. https://www.carlyle.com/ctac
6. https://bondbloxxetf.com/bondbloxx-private-credit-clo-etf/
7. https://neosfunds.com/qqqi/
8. https://www.calamos.com/funds/etf/calamos-autocallable-income-caie/
9. https://www.calamos.com/funds/etf/calamos-nasdaq-autocallable-income-caiq/
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.