XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) is a closed-end management investment company that seeks to provide current income and capital preservation through investments primarily in floating rate loans and other income-oriented securities. Launched in May 2021, the Trust offers investors access to a diversified portfolio of senior secured and unsecured floating rate loans, adjustable-rate debt instruments and selective alternative credit strategies.
The Trust’s core portfolio is centered on floating rate loans issued by corporations across a range of industries, including healthcare, telecommunications, energy and consumer products. By focusing on senior secured positions, XFLT aims to mitigate credit risk while capturing income that adjusts periodically with prevailing interest rates. In addition to corporate loans, the Trust may allocate to high-yield bonds, collateralized loan obligations (CLO) equity tranches, real estate debt and other private credit opportunities when market conditions are favorable.
Although headquartered in the United States, XAI Octagon Floating Rate & Alternative Income Trust maintains a global perspective, sourcing floating rate and alternative income opportunities in North America, Europe and selected emerging markets. The Trust employs a research-driven process that combines top-down macro analysis with bottom-up credit underwriting, enabling the portfolio management team to adapt sector exposures and security selection in response to changing economic and rate environments.
The Trust is co-advised by XAI Asset Management, LLC and Octagon Credit Investors, LLC, each of which brings extensive experience in credit research, securitized products and floating rate strategies. The combined leadership team includes professionals with decades of investment expertise in leveraged credit, structured finance and alternative debt markets. XFLT is traded on the New York Stock Exchange and provides investors with a liquid vehicle for accessing floating rate and alternative income segments of the fixed income universe.
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