XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT)

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is downgraded to a sell as earnings decline and growth remains limited. XFLT trades at a 20.21% discount to NAV, reflecting persistent portfolio challenges and negative market sentiment rather than a buying opportunity. Recent dividend cuts have not stabilized distributions; further reductions are likely as net investment income and earnings deteriorate.

VVR: Avoid This Floating-Rate Fund For The Time Being

Ultra-high-yield strategies (e.g., CLO equity, aggressive call option funds) risk capital destruction and income instability. Yet, conservative blue-chip income portfolios often yield too little (3-4%) to meet robust income goals or outpace inflation. My approach is to strike a balance between these two worlds.

CHICAGO, Feb. 18, 2026 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust's Quarterly Webinar on March 4, 2026, at 11:00 am (Eastern Time). Kevin Davis, Managing Director at XA Investments (“XAI”) will moderate the Q&A style webinar with Kimberly Flynn, President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors.

The broader market indexes started off 2026 on a solid note, though they underperformed micro-, small-, and mid-cap stocks. The energy sector started off with a surge for the year, but the financial services and technology sectors were starting off 2026 on the soft side. Every month, I put some capital to work in my closed-end fund portfolio to help compound my cash flow.

CHICAGO, Feb. 02, 2026 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.060 per share on the Trust's common shares (NYSE: XFLT), payable on March 2, 2026, to common shareholders of record as of February 17, 2026, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.060 per share.

2 BDC Value Creators For Durable NAV And High Income

Supporting Distribution Growth of XAI's Alternative Investment Funds Supporting Distribution Growth of XAI's Alternative Investment Funds

Interval and Tender Offer Fund Market Reaches New Milestones, See Interval Fund Dominance and Shift Toward Greater Investor Accessibility Interval and Tender Offer Fund Market Reaches New Milestones, See Interval Fund Dominance and Shift Toward Greater Investor Accessibility

CHICAGO, Jan. 08, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), a leader in closed-end interval and tender offer fund research, announces the launch of the XAI Interval Fund Credit Index™ (“INTVL-C”). INTVL-C is designed to track the performance of non-listed closed-end interval funds and tender offer funds registered under the Investment Company Act of 1940 (“1940 Act”) with majority allocations to alternative credit investments.

CHICAGO, Jan. 06, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), a leader in closed-end interval and tender offer fund research, is now offering the Octagon XAI CLO Income Fund (“OCTIX” or the “Fund”) for purchase by advisers who clear or custody through the Charles Schwab platform (“Schwab”), expanding access of XAI's registered offerings for financial advisors and their clients. “The addition of OCTIX to the Charles Schwab platform marks a major milestone for the fund.

The year is 2026, and the market (and macro) environment seem to be exactly the opposite of what is required for stress-free income. For prudent income investors, considering taking some risk off the table might be a good idea. But in most cases it comes at the cost of reduced income potential.

CHICAGO, Jan. 02, 2026 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.060 per share on the Trust's common shares (NYSE: XFLT), payable on January 30, 2026, to common shareholders of record as of January 15, 2026, as noted below. The distribution amount represents a 14.29% decrease from the previous month's $0.070 per share.

CHICAGO, Dec. 29, 2025 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), a leader in closed-end interval and tender offer fund research, announced it plans to expand the XAI Interval Fund Index™ (“INTVL”) suite with its first sub-index. Expected to launch in Q1 2026, the XAI Interval Fund Credit Index™ (“INTVL-C”) will track the performance of credit interval and tender offer funds.

XFLT (18% yield) is trading at its steepest discount since COVID. Portfolio credit metrics (OC cushions) are stronger than last year. Contraction in spreads is a temporary headwind to cash flow.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is rated Hold as it trades at a -15% discount to NAV after a -20% one-year total return. XFLT's NAV decline is driven by CLO Equity underperformance and compressed spreads, though senior loan allocations have outperformed benchmarks. Further Fed rate cuts could pressure XFLT's distributions and market price, but increased M&A activity in Q1 2026 may help widen spreads and stabilize NAV.