EFT - Looking At 2 High-Yield Options: KIO And IVH

February, 25 2021 06:00 AM Eaton Vance Floating Rate Income Trust of Beneficial Interest

These are two options in the high-yield sector that look at least semi attractive at these levels for various reasons.
These funds are more hybrid funds like ARDC with some allocation to leveraged loans helping to diversify the portfolio.
The high-yield space, as I've noted several times, is fully valued. But that doesn't mean you avoid it. It simply means you reduce some exposure and be selective.
While the loan and convertible sectors may be more compelling, there aren't many other areas worth investing in right now. Additionally, HY NAVs are rising nicely.
KIO is a very well-run fund and could easily be a buy and hold here. IVH is more of a medium-term (6-18 months) purchase with some upside optionality from potential proxy issues.

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Company Name:	Eaton Vance Floating Rate Income Trust of Beneficial Interest
Stock Symbol:	EFT
Market:	NYSE