- XAI Octagon Floating Rate & Alternative Income Trust (XFLT, Financial) declares a new monthly distribution of $0.070 per share, a 9.09% decrease from the previous $0.077.
- The Trust's annualized distribution rates stand at 14.51% based on market price and 13.86% on NAV as of May 30, 2025.
- XFLT will conduct a Q1 webinar on June 4, 2025, featuring executives from XA Investments and Octagon Credit Investors.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has announced a monthly distribution of $0.070 per common share, payable on July 1, 2025, marking a 9.09% reduction from the previous month's distribution of $0.077. This adjustment comes in the wake of market volatility and interest rate spread compression affecting loan and CLO asset classes.
The Trust continues to offer attractive yields despite the reduction, with annualized distribution rates of 14.51% on market price and 13.86% on NAV as of May 30, 2025. These rates remain competitive compared to typical fixed income alternatives. However, components of the distribution may include return of capital alongside traditional income.
XFLT’s investment strategy remains focused on floating rate credit instruments and structured credit investments, with at least 80% of managed assets in these categories under normal market conditions. This strategy may benefit from interest rate movements but also bears risks associated with spread compression in volatile markets.
In light of these developments, the Trust plans to host a Q1 webinar on June 4, 2025, featuring key executives from XA Investments and Octagon Credit Investors. This session aims to provide additional insights into the Trust's performance and future prospects amidst ongoing market challenges.
