Eaton Vance Floating-Rate Income Trust

EFT

Market cap $306M

This report screens ~400 closed-end funds (CEFs) for those with 100%+ net investment income coverage, highlighting lower risk of distribution cuts. Top lists identify CEFs with the widest discounts, most attractive z-scores, highest covered yields, and best combinations of value and income. Investors are encouraged to use these rankings as a starting point for due diligence, not as final buy or sell recommendations.

EFT offers high income via floating rate loans but faces headwinds from likely interest rate cuts, which could reduce distributions in 2025. The fund's returns rely almost entirely on distributions, as share price performance has lagged over the past decade. EFT trades at a slight discount to NAV, but this is not unusually attractive given its historical discount range and risk profile.

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.

The Eaton Vance Floating-Rate Income Trust is a fixed-income fund providing broad exposure to the floating-rate loan market. The interest rates are set to decline, although the pace of decline is not clear. Generally, this fund's earnings will decline as the interest rates decline due to the nature of underlying holdings. This fund should be accumulated when interest rates are low and expected to rise in the future. With that view, this fund is not a buy yet, but worth keeping on your radar.

Eaton Vance Floating-Rate Income Trust is currently overpriced, trading at a premium to NAV, which is unusual and at the top of its historic range. EFT's 8.5% distribution yield is not impressive given its high leverage ratio, making it less attractive compared to lower-risk ETFs like LONZ and FTSL. Leverage in EFT results in higher drawdowns during risk-off periods, making it more volatile compared to non-leveraged ETFs.

We review the CEF market valuation and performance through the first week of February and highlight recent market action. CEFs had a strong week, with most sectors in the green, driven by EM Equity and Muni sectors, and year-to-date gains in both NAVs and discounts. We take a look at why preferred CEFs have sharply outperformed their ETF counterparts last year.

BOSTON--(BUSINESS WIRE)--The following Eaton Vance closed-end funds (the “Funds”) announced distributions today as detailed below. Declaration – 2/3/2025 Ex-Date – 2/13/2025 Record – 2/13/2025 Payable – 2/24/2025 Municipal Bond Funds:   Fund Ticker Distribution Change From Prior Distribution Closing Market Price – 1/31/25 Distribution Rate at Market Price Eaton Vance California Municipal Income Trust CEV $0.0500 - $10.14 5.92% Eaton Vance Municipal Income Trust EVN $0.0513 - $10.31 5.97% Taxabl.

BOSTON--(BUSINESS WIRE)--Eaton Vance Floating-Rate Income Trust (the “Fund”) announced a distribution today as detailed below. Declaration – 12/20/2024 Ex-Date – 12/30/2024 Record – 12/30/2024 Payable – 1/15/2025   Fund Ticker Monthly Distribution Change From Prior Distribution Closing Market Price – 12/19/24 Distribution Rate at Market Price Eaton Vance Floating-Rate Income Trust EFT $0.1030 - $13.37 9.24% The declaration, record and payment dates of the regular January distribution has been a.

BOSTON--(BUSINESS WIRE)--The following Eaton Vance closed-end funds (the “Funds”) announced distributions today as detailed below. Declaration – 12/2/2024    Ex-Date – 12/12/2024    Record – 12/12/2024    Payable – 12/19/2024 Municipal Bond Funds: Fund Ticker Distribution Change From Prior Distribution Closing Market Price – 11/29/24 Distribution Rate at Market Price Eaton Vance California Municipal Income Trust CEV $0.0500 - $10.65 5.63% Eaton Vance Municipal Income Trust EVN $0.0513 - $10.79.

The Eaton Vance Floating-Rate Income Trust offers a 9.27% yield, but its yield is lower than similar funds, reducing its attractiveness for income-focused investors. The fund's income is pressured by declining Secured Overnight Financing Rates, likely leading to a distribution cut and disappointing future performance. The fund employs significant leverage (35.10%), making it more volatile than peers, but its net asset value has remained stable.