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Posted by
Two Blokes Jun 7 -
Filed in
Stock
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The Eaton Vance Floating-Rate Income Trust faces ongoing headwinds from expected Fed rate cuts, which will likely force further distribution reductions and pressure the share price. Despite a 9.2% yield and improved valuation, the fund's income and sustainability are at risk due to its reliance on floating-rate loans in a declining rate environment. The fund has exposure to fixed-rate securities, but these are very limited in quantity and are unlikely to offset the declining NII with capital gains.
