XFLT 📈 XAI Octagon Floating Rate - Overview

The XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE:XFLT) is a closed-end investment fund that aims to provide investors with a diversified portfolio of floating rate and alternative income-generating securities.

This trust focuses on investing in a mix of floating rate loans, bonds, and other debt instruments, as well as alternative income sources such as equities, real assets, and other non-traditional investments. By doing so, the fund seeks to generate a high level of current income, while also managing risk through a diversified portfolio.

The trust's investment approach is designed to take advantage of opportunities across various market segments, including leveraged loans, high-yield bonds, and other income-generating assets. The fund's managers employ a rigorous credit selection process to identify attractive investment opportunities that offer a strong potential for income generation and capital preservation.

As a closed-end fund, XFLT offers a fixed number of shares, which can provide investors with a more stable capital structure compared to open-end funds. Additionally, the trust's term structure allows investors to benefit from a defined investment horizon, which can help to mitigate uncertainty and provide a clearer understanding of the fund's investment objectives.

By investing in XFLT, investors can gain exposure to a diversified portfolio of income-generating assets, which can help to enhance their overall investment returns and provide a regular stream of income. The fund's focus on floating rate and alternative income sources can also help to reduce interest rate risk and provide a hedge against inflation.