EFL - A Review Of Eaton Vance Loan CEFs

• Eaton Vance boasts 5 loan CEFs which behave similarly to each other due to sharing many holdings.
• We take a look at discount valuation, funds fees and leverage costs, historic returns and distribution coverage.
• Among the four perpetual CEFs, we like EFR due to its relatively wide discount, low fees and expenses, strong historic absolute and risk-adjusted returns and good coverage.
• We also like the term fund EFL which could provide a measure of discount control as well as a 2% per annum tailwind into its termination and may be attractive to more risk-averse investors.
• Saba has been building up positions in four of the funds as leverage to get Eaton Vance to tighten the discount by potentially disrupting the approval of the new advisory agreement.

For further details see: