"We are seeking to accumulate the safest credits along the risk scale where yields are relatively higher but pose little risk to your principal. We are also buying those segments of the credit market that come attached with federal guarantees.

"Since the start of this year, the Fed has spent some $70 billion dollars buying bonds backed by home loans in an attempt to lower mortgage rates.

"After some initial success, however, mortgage rates have climbed recently but remain well below their pre-December announcement of the Fed's plan to purchase these securities.

"The central bank has pledged to buy $500 billion dollars of mortgage bonds by June in order to keep a lid on long-term rates to support the plunging residential housing market.

"With the Fed earmarking another $430 billion dollars to purchase mortgage agency debt, the time to build new positions in this sector is now.

"The first stage of this rally began last November and recently fizzled; but with long-term mortgage rates declining again over the last eight days, we're climbing aboard this trade.

"The Blackrock Income Trust commenced operations in July 1988. Mortgages represent 90% of the portfolio with 79% of the Fund invested in U.S. government securities and the rest mostly diversified in AAA-rated mortgage agency debt.

"The effective duration of the Fund is 6.23 years, conservative by most measures and offering a low risk portfolio of high quality government-backed securities.

"Instead of buying mortgage agency debt at face value like most investors, we are purchasing Blackrock Income Trust at a 7.4% discount to its NAV, meaning we get to own a diversified basket of these bonds for just $0.93 cents on the dollar!

"And in my book, buying a portfolio of mortgage bonds at a discount to their intrinsic value further adds a margin of safety to our strategy.

"From its crash-low last fall, BKT has posted a sharp recovery from $4.25. The crash in BKT's share price was consistent with the break in other non-Treasury fixed-income markets after the collapse of Lehman Brothers. The fund has since recovered nicely, posting a sharp recovery from $4.25.

"The way I see it, credit investors should accumulate positions like BKT because the securities are guaranteed by the federal government while further supported by the Federal Reserve this year as it strives to keep mortgage rates low.

"This is a conservative investment that should generate at least a 10%-15% return over the next 12-months with low risk. A 10% total return in this lousy market is pretty darn good. Buy the Blackrock Income Trust up to $6.50."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.