OXLCP - XFLT: XFLT.PA - The New 6.5% Preferred Kid On The Block

• We take a look at the upcoming 6.5% preferred from the CLO Equity/Loan CEF XFLT.
• The fund's significant allocation to first-lien loans is a big plus for the preferred while the credit facility is a negative.
• Overall, XFLT looks competitive in the sector from a risk/reward perspective.
• A scenario when the preferred outperforms is an extended period of broad-based depressed loan prices which will drive CLO Equity valuations lower.

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