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Upturn AI SWOT - About
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT)
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Upturn Advisory Summary
10/15/2025: XFLT (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit 6.8% | Avg. Invested days 59 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 424.94M USD | Price to earnings Ratio 27.9 | 1Y Target Price 8 |
Price to earnings Ratio 27.9 | 1Y Target Price 8 | ||
Volume (30-day avg) - | Beta - | 52 Weeks Range 4.76 - 7.16 | Updated Date 06/29/2025 |
52 Weeks Range 4.76 - 7.16 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 15.05% | Basic EPS (TTM) 0.2 |
Earnings Date
Report Date 2025-06-05 | When Before Market | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE 27.9 | Forward PE - | Enterprise Value - | Price to Sales(TTM) 24.45 |
Enterprise Value - | Price to Sales(TTM) 24.45 | ||
Enterprise Value to Revenue 37.73 | Enterprise Value to EBITDA - | Shares Outstanding 76154600 | Shares Floating - |
Shares Outstanding 76154600 | Shares Floating - | ||
Percent Insiders 1.74 | Percent Institutions 11.63 |
Upturn AI SWOT
XAI Octagon Floating Rate & Alternative Income Term Trust
Company Overview
History and Background
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) was formed to invest in a portfolio of floating rate credit instruments and other structured credit investments, focusing on attractive risk-adjusted returns. The fund leverages Octagon Credit Investors, LLC's expertise in credit analysis.
Core Business Areas
- Floating Rate Credit Instruments: Invests primarily in senior secured loans, CLOs, and other credit instruments with floating interest rates.
- Structured Credit Investments: Allocates capital to various structured credit assets to enhance portfolio diversification and yield.
Leadership and Structure
The investment advisor is XA Investments LLC. Octagon Credit Investors, LLC serves as the sub-advisor. The management team has significant experience in credit markets and structured finance.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Invests in senior secured loans, which are typically the most senior debt in a company's capital structure. Competitors in this space include other closed-end funds and institutional investors focused on leveraged loans.
- Collateralized Loan Obligations (CLOs): Allocates capital to CLOs, which are structured credit products backed by pools of loans. Competitors include other CLO investors and managers.
- Alternative Credit Investments: Diversifies into other credit-related investments to improve risk-adjusted returns. These investments may include distressed debt, mezzanine debt, and other specialized credit strategies. Competitors are hedge funds and private credit funds. Market share data is not readily available for specific product segments.
Market Dynamics
Industry Overview
The market for floating rate credit is influenced by interest rate environments, credit spreads, and overall economic conditions. Demand for floating rate assets tends to increase during periods of rising interest rates. The CLO market is driven by investor demand for structured credit and the availability of underlying loans.
Positioning
XFLT positions itself as a provider of high current income through strategic allocation to floating rate credit and alternative credit investments. Its competitive advantage lies in its experienced management team and diversified portfolio.
Total Addressable Market (TAM)
The TAM for leveraged loans and CLOs is estimated to be in the trillions of dollars. XFLT's AUM of approximately $1.2 billion represents a small fraction of the overall market, indicating substantial room for growth.
Upturn SWOT Analysis
Strengths
- Experienced Management Team
- Diversified Portfolio
- High Current Income
- Access to Octagon Credit Investors' Expertise
Weaknesses
- Reliance on External Management
- Market Volatility Exposure
- Credit Risk
- Leverage Risk
Opportunities
- Rising Interest Rate Environment
- Expansion of Credit Markets
- Increased Demand for CLOs
- Strategic Acquisitions
Threats
- Economic Recession
- Increased Credit Spreads
- Regulatory Changes
- Increased Competition
Competitors and Market Share
Key Competitors
- OXSQ
- ECC
- ARCC
- PDI
Competitive Landscape
XFLT competes with other closed-end funds and institutional investors for allocations to floating rate credit. Its advantage lies in its experienced management team and diversified portfolio, but it faces competition from larger, more established players.
Growth Trajectory and Initiatives
Historical Growth: XFLT's growth has been driven by asset growth, reinvestment of dividends, and strategic portfolio management.
Future Projections: Future growth will depend on market conditions, interest rates, and the fund's ability to generate attractive risk-adjusted returns. Analyst estimates vary based on macroeconomic forecasts.
Recent Initiatives: Recent initiatives include portfolio optimization, strategic capital allocation, and efforts to enhance shareholder value.
Summary
XAI Octagon Floating Rate & Alternative Income Term Trust offers investors high current income through its diversified portfolio of floating-rate credit instruments. Its experienced management team is a key strength, though it faces risks from market volatility and credit spreads. The fund's future growth depends on its ability to generate attractive returns and adapt to changing market conditions. The fund is externally managed which presents a weakness.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Publicly available financial reports
- Company presentations
- Industry research reports
Disclaimers:
The data provided is based on publicly available information and is subject to change. This analysis is for informational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About XAI Octagon Floating Rate & Alternative Income Term Trust
Exchange NYSE | Headquaters Chicago, IL, United States | ||
IPO Launch date 2017-09-27 | CEO - | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
XAI Octagon Floating Rate & Alternative Income Trust is headquartered in Chicago, Illinois.
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