News

Reuters Interviews Kimberly Flynn on the Launch of the XAI Octagon Term Trust

In the Reuters article entitled “LPC: Loan market turns to term trust structure as investors search for yield,” Kristen Haunss discusses continued interest in leveraged loans as well as closed-end term trusts which offer a set maturity date and more favorable trading history than perpetual closed-end funds. She suggests that a term trust might be the next evolution in closed-end funds citing the XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) as an example of this trend.

The article noted that Octagon Credit Investors teamed up with XA Investments for a term trust fund that may invest in first- and second-lien loans, and hold as much as 50% of its portfolio in the debt and equity of Collateralized Loan Obligation (CLO) funds.

Kimberly Flynn, Managing Director of Alternative Investments was interviewed by Ms. Haunss and points to the growing number of investors who are seeking protection from rising interest rates via view leveraged loans and CLO investments.

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