UPDATE: Stifel Nicolaus Initiates Buy on Eaton Vance Floating-Rate Income Trust
Stifel Nicolaus initiated coverage on Eaton Vance Floating-Rate Income Trust (NYSE: EFT) with a Buy rating.
Stifel Nicolaus commented, "Senior loans pay a floating rate of interest that is based on a benchmark such as the London Interbank Offered Rate (LIBOR). Loan funds' dividends tend to increase when rates rise. Senior loans are at the top of a company's capital structure. This allows them to be repaid ahead of subordinated debt in the event of a default. Senior loans historically have had recovery rates of approximately 70% after a default."
Eaton Vance Floating-Rate Income Trust closed at $16.01 on Friday.
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