A little something for those seeking income without interest rate risk today.

music selection: “Glycerine” — Bush

The Eaton Vance floating rate trust is a closed end fund that invests in floating rate debt.  If interest rates rise, so does its income…and your distribution.  This provides a lot of protection if the Fed gets aggressive with increasing interest rates.  The trust is currently paying .076 per share in interest income.  This investment is thus best held in a tax advantaged account.  Current yield on market price of 13.45 is 6.78%.

EFT currently trades at a 10.9% to its Net Asset Value (NAV).  You can thus by 14.96 worth of assets for only 13.45!  Remember, a raptor never buys a Closed End Fund for more than NAV.  That is a dumbo T.Rex move.

The raptor model calls for a healthy allocation to bonds.  EFT can be an important part of that allocation for lizards that are wary of Fed rate increases.

Devour your prey raptors!

Buy Eaton Vance Floating-Rate Income Trust (EFT)

Never miss another opportunity to devour prey!

2 thoughts on “Buy Eaton Vance Floating-Rate Income Trust (EFT)

  • September 29, 2015 at 4:52 pm
    Permalink

    That yield and the benefits in the coming market does peak my interest. I just don’t like fees. I will have to check them out to see what it is.
    DFG

    Reply
    • September 29, 2015 at 5:16 pm
      Permalink

      The fees are part of the package. I consider them partially offset in the case of a leveraged fund as the fund can borrow at a better rate than I can; this justifies part of the fee.

      Reply

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