Eaton Vance Floating-Rate Income Trust (NYSE:EFT) is a closed-end management investment company that seeks current income, with capital appreciation as a secondary objective. The Trust primarily invests in floating-rate senior secured bank loans, which carry interest rates that adjust periodically with prevailing short-term interest rates. By focusing on floating-rate instruments, Eaton Vance Floating-Rate Income Trust aims to help investors mitigate interest rate risk in a rising rate environment while pursuing attractive yield opportunities.
The Trust’s investment portfolio is constructed through rigorous credit analysis and active management. At least 80% of its assets are allocated to senior secured bank loans, with the remainder typically invested in other floating-rate obligations, high-yield securities, collateralized loan obligations (CLOs) and related debt instruments. This diversified approach seeks to enhance yield potential while maintaining a level of credit quality consistent with the Trust’s income objectives. The portfolio managers employ both top-down and bottom-up research to identify issuers with strong collateral support and resilient cash flows.
Launched in 1998 and headquartered in Boston, Eaton Vance Floating-Rate Income Trust is managed by a team at Eaton Vance Management, a subsidiary of Morgan Stanley Investment Management. The experienced portfolio management team brings a blend of credit research expertise and structured finance insight, leveraging Eaton Vance’s global research platform. Over its history, the Trust has navigated various market cycles, drawing on Eaton Vance’s analytical resources to adapt its strategy in changing credit environments.
Geared toward both individual and institutional investors seeking regular distributions, the Trust typically pays dividends on a monthly basis. Its closed-end structure allows the portfolio managers to commit capital to higher-yielding opportunities without the need to maintain cash reserves for redemptions, offering potentially greater income stability. As a dedicated floating-rate vehicle, Eaton Vance Floating-Rate Income Trust serves investors looking for income solutions that can respond dynamically to shifts in interest rate conditions.
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