XFLT: Reverse Split Didn't Fix Structural Issues
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) continues to face significant structural issues despite a recent reverse split. The fund is trading at a 19% discount to its net asset value (NAV) and has a high leverage of 39%. Analysts maintain a sell rating due to ongoing NAV erosion and concerns over credit quality.
- ▪XFLT is currently rated as a sell due to persistent NAV erosion and structural weaknesses.
- ▪The fund trades at a deep 19% discount to NAV, indicating poor performance and high risk.
- ▪It has an aggressive leverage of 39% with limited transparency on credit quality.
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