ECCU - XFLT And EIC: Double-Digit Yields To Boost Your Income
2025-02-19 11:46:06 ET
Summary
- XFLT and EIC are high-yielding, leveraged closed-end funds focused on CLOs, offering double-digit yields, but these can come with higher risks and volatility.
- XFLT combines CLO exposure with senior secured loan investments, while EIC focuses primarily on junior debt tranches of CLOs, making EIC relatively less risky.
- Both funds will have sensitivity to interest rate changes, which we saw with XFLT recently cutting its distribution after the Fed cut 100 basis points.
Written by Nick Ackerman, co-produced by Stanford Chemist
Today, we are looking at two collateralized loan obligation-focused closed-end funds to boost your income significantly. These are higher yielders, paying into the double-digits. Of course, higher yielders can often come with higher risks. These certainly aren't risk-free investments, either. These are closed-end funds that are leveraged, meaning they are utilizing borrowings to help bump up their yields....
XFLT And EIC: Double-Digit Yields To Boost Your Income