XFLT And EIC: Double-Digit Yields To Boost Your Income
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XFLT and EIC are leveraged closed-end funds offering double-digit yields through CLO investments. XFLT combines CLOs with senior secured loans, while EIC focuses on junior debt tranches. Both are sensitive to interest rate changes, with XFLT recently cutting its distribution.
February 19, 2025 | 5:00 pm
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XFLT, a leveraged closed-end fund, offers high yields through CLOs and senior secured loans. It recently cut its distribution following a Fed rate cut, highlighting its sensitivity to interest rate changes.
XFLT's recent distribution cut following a Fed rate cut indicates its sensitivity to interest rate changes, which could negatively impact its short-term stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
EIC, a leveraged closed-end fund, focuses on junior debt tranches of CLOs, offering high yields with relatively lower risk compared to XFLT. It remains sensitive to interest rate changes.
EIC's focus on junior debt tranches of CLOs offers a relatively lower risk profile compared to XFLT, but its sensitivity to interest rate changes could affect its performance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70