Eaton Vance Floating-Rate Income Trust (EFT)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Eaton Vance Floating-Rate Income Trust (EFT) with AI Score 49/100 (Weak). Eaton Vance Floating-Rate Income Trust is a closed-end fund specializing in senior, secured floating-rate loans. It offers investors exposure to the U. S. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 17, 2026Eaton Vance Floating-Rate Income Trust (EFT) Financial Services Profile
Eaton Vance Floating-Rate Income Trust (EFT) is a closed-end fund providing exposure to U.S. fixed income markets through senior, secured floating-rate loans. Managed by Eaton Vance Management, EFT benchmarks its performance against the S&P/LSTA Leveraged Loan Index, offering a potentially attractive dividend yield in the current interest rate environment.
Investment Thesis
Eaton Vance Floating-Rate Income Trust (EFT) presents a notable research candidate for income-seeking investors. With a dividend yield of 9.76% as of 2026-03-17, EFT offers a potentially attractive income stream in a low-yield environment. The fund's focus on senior, secured floating-rate loans provides a degree of protection against rising interest rates, as the interest rates on these loans adjust with changes in benchmark rates. However, investors should be aware of the credit risk associated with leveraged loans, as well as the potential for fluctuations in the fund's net asset value (NAV). The fund's beta of 0.46 suggests lower volatility compared to the broader market. Growth catalysts include increased demand for floating-rate assets in a rising interest rate environment and effective management by Eaton Vance Management. Key value drivers include the fund's ability to generate consistent income and maintain a competitive yield relative to its peers.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $0.29 billion indicates a mid-sized closed-end fund.
- P/E ratio of 12.66 suggests a potentially reasonable valuation compared to earnings.
- Profit margin of 37.5% reflects efficient operations and strong profitability.
- Gross margin of 80.3% indicates a significant difference between revenue and the cost of goods sold, suggesting pricing power or efficient cost management.
- Dividend yield of 9.76% provides a substantial income stream for investors.
Competitors & Peers
Strengths
- High dividend yield of 9.76% provides an attractive income stream.
- Focus on senior, secured floating-rate loans offers protection against rising interest rates.
- Managed by Eaton Vance Management, a reputable asset manager.
- Diversified portfolio reduces concentration risk.
Weaknesses
- Exposure to credit risk associated with leveraged loans.
- Potential for fluctuations in net asset value (NAV).
- Closed-end fund structure can lead to trading at a premium or discount to NAV.
- Sensitivity to changes in interest rates and credit spreads.
Catalysts
- Ongoing: Rising interest rates could increase the attractiveness of EFT's floating-rate loan portfolio.
- Ongoing: Continued demand for income-generating assets may drive investment into EFT.
- Upcoming: Potential for strategic acquisitions or partnerships by Eaton Vance Management to enhance EFT's investment strategies.
- Ongoing: Effective portfolio management by Eaton Vance Management contributing to consistent performance.
Risks
- Potential: Economic downturn could lead to increased loan defaults and negatively impact EFT's NAV.
- Potential: Unexpected interest rate hikes could decrease the value of the fund's loan portfolio.
- Ongoing: Credit risk associated with leveraged loans could result in losses.
- Ongoing: Competition from other asset managers could put pressure on EFT's performance and fees.
Growth Opportunities
- Rising Interest Rate Environment: As interest rates rise, the floating-rate nature of EFT's loan portfolio becomes increasingly attractive to investors. This is because the interest rates on these loans adjust upwards with benchmark rates, providing a hedge against inflation and rising borrowing costs. The market for floating-rate loans is expected to grow as investors seek to protect their portfolios from interest rate risk. This growth opportunity is ongoing and could significantly enhance EFT's appeal.
- Increased Demand for Income-Generating Assets: In a low-yield environment, investors are increasingly seeking alternative sources of income. EFT's high dividend yield of 9.76% makes it a noteworthy option for income-seeking investors. The demand for income-generating assets is expected to remain strong in the coming years, driven by demographic trends and the need for retirement income. This ongoing trend presents a significant growth opportunity for EFT.
- Effective Portfolio Management by Eaton Vance Management: Eaton Vance Management has a proven track record of managing fixed-income portfolios. Their expertise in selecting and managing leveraged loans can contribute to EFT's performance and attract investors. Effective portfolio management is crucial for navigating the complexities of the leveraged loan market and generating consistent returns. This ongoing factor is a key driver of EFT's success.
- Expansion of the Leveraged Loan Market: The leveraged loan market has experienced significant growth in recent years, driven by increased corporate borrowing and private equity activity. This growth provides EFT with a larger pool of potential investments and opportunities to diversify its portfolio. The expansion of the leveraged loan market is expected to continue in the coming years, creating further growth opportunities for EFT. This is an ongoing trend.
- Strategic Acquisitions and Partnerships: Eaton Vance Management may pursue strategic acquisitions or partnerships to expand its capabilities and reach. These initiatives could enhance EFT's investment strategies and attract new investors. Strategic acquisitions and partnerships can provide access to new markets, technologies, and expertise. This potential growth driver could contribute to EFT's long-term success.
Opportunities
- Rising interest rate environment could increase demand for floating-rate assets.
- Increased demand for income-generating assets.
- Expansion of the leveraged loan market.
- Strategic acquisitions and partnerships by Eaton Vance Management.
Threats
- Economic downturn could lead to increased loan defaults.
- Increased competition from other asset managers.
- Changes in regulations could impact the leveraged loan market.
- Unexpected interest rate hikes could negatively impact loan values.
Competitive Advantages
- Established track record in managing fixed-income portfolios.
- Expertise in selecting and managing leveraged loans.
- Access to Eaton Vance Management's research and resources.
- Diversified portfolio of floating-rate loans.
About EFT
Eaton Vance Floating-Rate Income Trust (EFT) was established on June 29, 2004, and is domiciled in the United States. It operates as a closed-end, fixed-income mutual fund, managed by Eaton Vance Management. The fund's primary investment strategy focuses on the U.S. fixed income market, specifically targeting senior, secured floating-rate loans. These loans typically offer higher yields compared to traditional fixed-rate bonds, but also carry a higher degree of credit risk. EFT benchmarks its portfolio performance against the S&P/LSTA Leveraged Loan Index, a widely recognized benchmark for the leveraged loan market. The fund's investment approach involves selecting a diversified portfolio of floating-rate loans across various sectors, aiming to provide investors with a steady stream of income. As a closed-end fund, EFT has a fixed number of shares, which can trade at a premium or discount to the fund's net asset value (NAV). The fund is designed for investors seeking income generation through exposure to the leveraged loan market. Eaton Vance Management, the fund's manager, is responsible for the day-to-day investment decisions and portfolio management. The fund's investment strategy is subject to various market risks, including interest rate risk, credit risk, and liquidity risk. The fund's performance is also influenced by the overall health of the U.S. economy and the leveraged loan market.
What They Do
- Invests in fixed income markets of the United States.
- Focuses on senior, secured floating rate loans.
- Provides investors with exposure to the leveraged loan market.
- Generates income through interest payments on loans.
- Manages a diversified portfolio of floating-rate loans.
- Benchmarks performance against the S&P/LSTA Leveraged Loan Index.
Business Model
- EFT generates income primarily from the interest payments received on its portfolio of senior, secured floating-rate loans.
- The fund's expenses include management fees paid to Eaton Vance Management and other operating costs.
- EFT distributes its income to shareholders in the form of dividends.
- The fund's net asset value (NAV) is determined by the market value of its loan portfolio.
Industry Context
Eaton Vance Floating-Rate Income Trust operates within the asset management industry, specifically focusing on fixed-income investments. The industry is characterized by intense competition among asset managers seeking to attract investor capital. The market for leveraged loans, in which EFT primarily invests, is influenced by factors such as interest rates, credit spreads, and economic growth. The asset management industry is subject to regulatory oversight and is sensitive to market volatility. EFT competes with other closed-end funds and investment vehicles that offer exposure to the leveraged loan market. Market trends include increasing demand for alternative investments and income-generating assets.
Key Customers
- Individual investors seeking income generation.
- Institutional investors looking for exposure to the leveraged loan market.
- Retirement savers seeking a steady stream of income.
- Investors seeking diversification in their fixed-income portfolios.
Financials
Chart & Info
Eaton Vance Floating-Rate Income Trust (EFT) stock price: Price data unavailable
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Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for EFT.
Price Targets
Wall Street price target analysis for EFT.
MoonshotScore
What does this score mean?
The MoonshotScore rates EFT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Payson F. Swaffield
Managing Director
Payson F. Swaffield serves as a Managing Director at Eaton Vance Management. His responsibilities include overseeing various investment strategies and managing client portfolios. He has extensive experience in the fixed-income markets and a deep understanding of leveraged loans. Swaffield's background includes roles in portfolio management, credit analysis, and trading. His expertise contributes to the fund's investment decisions and overall performance. He is responsible for managing 0 employees.
Track Record: Under Payson F. Swaffield's leadership, Eaton Vance Floating-Rate Income Trust has maintained a competitive dividend yield and navigated various market conditions. His strategic decisions have focused on optimizing the fund's portfolio and managing risk. His expertise has contributed to the fund's consistent performance and ability to generate income for shareholders.
What Investors Ask About Eaton Vance Floating-Rate Income Trust (EFT)
What does Eaton Vance Floating-Rate Income Trust do?
Eaton Vance Floating-Rate Income Trust (EFT) is a closed-end fund that invests primarily in senior, secured floating-rate loans. These loans are typically issued by companies with below-investment-grade credit ratings and offer interest rates that adjust with changes in benchmark rates. EFT aims to provide investors with a high level of current income by investing in a diversified portfolio of these loans. The fund is managed by Eaton Vance Management and benchmarks its performance against the S&P/LSTA Leveraged Loan Index. EFT offers investors exposure to the leveraged loan market with the potential for income generation and protection against rising interest rates.
What do analysts say about EFT stock?
Analyst coverage of Eaton Vance Floating-Rate Income Trust (EFT) typically focuses on its dividend yield, net asset value (NAV), and exposure to the leveraged loan market. The consensus view is that EFT offers an attractive income stream for income-seeking investors. However, analysts also caution about the credit risk associated with leveraged loans and the potential for fluctuations in the fund's NAV. Key valuation metrics include the fund's price-to-NAV ratio and its dividend yield relative to its peers. Growth considerations include the fund's ability to generate consistent income and manage risk effectively. Analyst ratings and price targets vary depending on individual firms' research and methodologies. No buy or sell recommendations are made here.
What are the main risks for EFT?
The main risks for Eaton Vance Floating-Rate Income Trust (EFT) include credit risk, interest rate risk, and liquidity risk. Credit risk refers to the possibility that borrowers may default on their loan obligations, resulting in losses for the fund. Interest rate risk arises from the potential for changes in interest rates to negatively impact the value of the fund's loan portfolio. Liquidity risk refers to the possibility that the fund may not be able to sell its loans quickly enough to meet redemption requests or other obligations. Other risks include market risk, regulatory risk, and management risk. These risks could negatively impact EFT's performance and NAV.
How sensitive is EFT to interest rate changes?
Eaton Vance Floating-Rate Income Trust is designed to be relatively less sensitive to interest rate changes compared to traditional fixed-rate bond funds. Because EFT primarily invests in floating-rate loans, the interest rates on these loans adjust periodically based on a benchmark rate, such as LIBOR or SOFR. This means that as interest rates rise, the income generated by EFT's portfolio also tends to increase, providing a hedge against inflation and rising borrowing costs. However, it's important to note that EFT is not entirely immune to interest rate risk. Changes in interest rates can still affect the fund's net asset value (NAV) and the demand for its shares.
What regulatory challenges does Eaton Vance Floating-Rate Income Trust face?
Eaton Vance Floating-Rate Income Trust, as a registered investment company, is subject to regulatory oversight by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. These regulations govern various aspects of the fund's operations, including its investment policies, valuation procedures, and disclosure requirements. Compliance with these regulations can be costly and time-consuming. Additionally, changes in regulations could impact the leveraged loan market and the fund's investment strategies. Other regulatory challenges include potential changes in tax laws and accounting standards. Eaton Vance Management must ensure that EFT complies with all applicable regulations to avoid penalties and maintain its good standing.
What are the key factors to evaluate for EFT?
Eaton Vance Floating-Rate Income Trust (EFT) currently holds an AI score of 49/100, indicating low score. Key strength: High dividend yield of 9.76% provides an attractive income stream.. Primary risk to monitor: Potential: Economic downturn could lead to increased loan defaults and negatively impact EFT's NAV.. This is not financial advice.
How frequently does EFT data refresh on this page?
EFT prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven EFT's recent stock price performance?
Recent price movement in Eaton Vance Floating-Rate Income Trust (EFT) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: High dividend yield of 9.76% provides an attractive income stream.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for EFT. This dossier is based on limited information and publicly available data. Further research is recommended.