Eaton Vance Floating-Rate Advantage Class R6 (EFRRX)

Overview

This fund specializes in investing primarily in income-producing floating rate loans and other floating rate debt securities. These instruments typically consist of senior floating rate loans issued by both domestic and foreign borrowers, known as Senior Loans. Predominantly, the fund targets loans that are of below-investment-grade quality, which often means they carry higher risk but potentially offer higher returns. Such loans commonly have credit ratings that fall into the category of high risk or speculative, frequently referred to as "junk". By focusing on floating rate debt, the fund seeks to invest in securities that offer variable interest payments which can adjust to changing market interest rates, potentially providing a hedge against inflation and changes in the interest rate environment.

Products and Services

• Income Producing Floating Rate Loans

  These are loans that offer variable interest payments which adjust based on changes in a reference interest rate. The goal is to generate income through these adjustments, which can be more advantageous in a rising interest rate environment. Because the fund invests at least 80% of its assets here, this signifies a strong focus on seeking to provide income to investors through market interest rate fluctuations.

• Senior Floating Rate Loans

  This product centers on lending to entities through senior loans that are secured and have priority over other debts in the case of a borrower's bankruptcy or liquidation. These loans, primarily to domestic and foreign borrowers, attempt to mitigate risk by having a secured status, although they are typically issued by companies with below-investment-grade ratings, indicating a higher risk and potentially higher yield.

• Other Floating Rate Debt Securities

  Apart from floating rate loans, the fund also diversifies its portfolio by investing in other types of floating rate debt securities. These might include but are not limited to, bonds or notes with variable interest rates. Like the income-producing and senior floating rate loans, these securities are designed to offer a hedge against interest rate volatility, contributing to the fund’s strategy of minimizing risk while seeking income.