XFLT - ARDC And XFLT: Providing ~10% Income For Investors
2024-04-29 23:58:04 ET
Summary
- Inflation is keeping the need for Fed rate cuts at bay, benefiting funds with higher floating-rate security investment exposure.
- Ares Dynamic Credit Allocation Fund and XAI Octagon Floating Rate & Alternative Income Trust are two funds that can continue to generate higher income in the current environment.
- ARDC and XFLT offer attractive yields of 10%+, and even more importantly, these distributions are covered by the income received in their underlying portfolios.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Inflation remains sticky, and that's pushing off the need for the number of rate cuts from the Fed and pushing back when those cuts are expected to come. We recently covered Blackstone Strategic Credit 2027 Term Fund ( BGB ) to highlight its benefits as a mostly floating rate-focused fund.
Today, I wanted to give an update and quick look at two more funds for generating even higher income in this "higher for longer" environment. That would be the Ares Dynamic Credit Allocation Fund ( ARDC ) and the XAI Octagon Floating Rate & Alternative Income Trust ( XFLT )....
ARDC And XFLT: Providing ~10% Income For Investors