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Posted by
Two Blokes Jul 15 -
Filed in
Stock
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EFR offers an attractive 8.7% yield from floating rate debt, providing income and some protection against equity volatility. The fund is highly diversified but concentrated in below investment grade loans, exposing investors to credit risk and potential defaults. With likely interest rate cuts ahead, EFR's net investment income and dividend sustainability are at risk, making future payouts less certain.
