Eaton Vance Floating - Rate Fund Class C (ECBLX)

Overview

The fund described primarily focuses on investing in income-producing floating rate loans and other floating rate debt securities. Its strategy leans heavily towards allocating at least 80% of its total assets into these financial instruments. The fund's investment inclination is largely towards senior floating rate loans from both domestic and foreign borrowers, known as Senior Loans. These are typically below investment grade quality, arriving with ratings that mark them as high risk or speculative, often categorized colloquially as "junk." This investment approach highlights a risk-tolerant strategy aimed at potentially higher returns tied to the floating interest rates of these securities, which adjust to market conditions.

Products and Services

• Income Producing Floating Rate Loans

  These are loans that offer an interest rate that floats or adjusts periodically based on a benchmark interest rate or index. The fund invests in these loans with the anticipation that they will generate regular income, a strategic move aimed at capturing higher yields in a rising interest rate environment while attempting to mitigate the interest rate risk associated with fixed rate instruments.

• Other Floating Rate Debt Securities

  Alongside floating rate loans, the fund diversifies its portfolio by investing in other types of floating rate debt securities. These might include but are not limited to, floating rate bonds, notes, and other debt instruments that have similar characteristics to floating rate loans, such as periodic adjustments in interest rates. This diversification is intended to spread risk and enhance the potential for income across different sectors and issuers.

• Senior Floating Rate Loans

  The focus on Senior Loans underlines the fund’s strategy to secure positions in debt instruments that are often secured and hold a higher claim on a borrower's assets in the event of a default, compared to other debt forms. Despite their lower credit quality and associated higher risk, these loans are prioritized in the portfolio for their potential to deliver attractive risk-adjusted returns relative to other below investment grade debt.