{"id":21038,"date":"2023-06-10T22:50:54","date_gmt":"2023-06-11T02:50:54","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/xflt-a-look-at-the-latest-report-nysexflt\/"},"modified":"2023-06-10T22:50:56","modified_gmt":"2023-06-11T02:50:56","slug":"xflt-a-look-at-the-latest-report-nysexflt","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=21038","title":{"rendered":"XFLT: A Look At The Latest Report (NYSE:XFLT)"},"content":{"rendered":"
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Written by Nick Ackerman, co-produced by Stanford Chemist. This article was originally published to members of the CEF\/ETF Income Laboratory on May 27th, 2023.<\/em><\/p>\n

XAI Octagon Floating Rate & Alternative Income Term Trust’s (NYSE:XFLT<\/span>) latest semi-annual report shows that coverage of the distribution remains strong. Although there was a declaration in the latest quarter over the prior year-over-year, there was a material improvement. This was, of course, thanks to rising interest rates.<\/span><\/p>\n

I’ve been following XFLT fairly closely in the last year, as it was one fund set to benefit from higher interest rates in terms of its income generation. That said, it hasn’t been without its drawbacks too. We’ve still seen the decline in the share price that also comes from higher interest rates and credit risks increasing.<\/p>\n

Since our previous update, the distribution has increased from $0.073 per month to $0.085. As we noted in the previous update, this increase was expected due to regulated investment company requirements for distributions. Income generation rises, and the obligation to pay out a higher distribution also rises despite what the actual underlying portfolio is doing.<\/span><\/p>\n

An increase in the distribution from a fund that was already sporting a ~14% distribution yield seems a bit crazy, but we have to follow the numbers. The numbers told us that an increase was probable, and in this case, that’s exactly what happened.<\/p>\n

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XFLT Performance Since Prior Update (Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

It hasn’t necessarily been that long since our previous update, but with a new semi-annual report, I wanted to provide an update on the latest figures. The fund has provided a total return that’s fairly competitive since our March 27th, 2023, article posting. The fund has begun trading at a slight premium, but it’s not at any sort of gross overvaluation. That could make it a fairly interesting fund to consider for investors at this time.<\/p>\n

The Basics<\/h2>\n