Why floating-rate loans now 


With inflation being a major risk factor and multiple Fed rate hikes expected this year, we believe loans can be an attractive, effective “anti-bond” strategy for investors’ fixed-income portfolios.


Yield generation

Unlike traditional, fixed-rate bonds and other “safe haven” investments, yields on floating-rate loans historically tend to go up when interest rates rise.

Bond hedge

Healthy economic trends expose traditional bonds to rising inflation and rate hikes. Floating-rate loans have virtually zero interest-rate risk.

Lower risk profile

Loans’ senior/secured positioning at the top of an issuer’s capital structure is unique in the corporate fixed-income market.

Why partner with Eaton Vance


Premier manager with more than three decades of loan market experience


25+ member team dedicated exclusively to the management of floating-rate loans


A strong culture of managing downside risk and producing attractive risk-adjusted returns

Spotlight strategies

Choose what best fits your clients’ income and diversification needs.

Floating-Rate Advantage Fund

Overall Morningstar Rating,
I shares, as of 3/31/22,
among 228 Bank Loan Funds

Visit fund page

Floating-Rate & High Income Fund

Overall Morningstar Rating,
I shares, as of 3/31/22,
among 228 Bank Loan Funds

Visit fund page


Overall Morningstar Rating,
I shares, as of 3/31/22,
among 228 Bank Loan Funds

Visit fund page
Morningstar Ratings are based on risk-adjusted returns. See below for detailed methodology.

Breaking views

Advisor resources

Dive deeper into our spotlight strategies and stay on top of loan market trends.

Impactful charts


Monthly updates


Latest insights


Senior leadership

Tap into the unparalleled expertise of our experienced, long-tenured team.

Picture of Craig Russ

Craig Russ

Floating-Rate Loan Group, Portfolio Manager

See bio
Picture of Andrew Sveen, CFA

Andrew Sveen, CFA

Director of Floating-Rate Loan Group, Portfolio Manager

See bio

Dedicated support

Contact your Eaton Vance representative today to learn more about our floating-rate loan experience, expertise and strategies.


About Risk: The value of investments held by the Fund may increase or decrease in response to economic, and financial events (whether real, expected or perceived) in the U.S. and global markets. Loans are traded in a private, unregulated inter-dealer or inter-bank resale market and are generally subject to contractual restrictions that must be satisfied before a loan can be bought or sold. These restrictions may impede the Fund's ability to buy or sell loans (thus affecting their liquidity) and may negatively impact the transaction price. It may take longer than seven days for transactions in loans to settle. Due to the possibility of an extended loan settlement process, the Fund may hold cash, sell investments or temporarily borrow from banks or other lenders to meet short-term liquidity needs. Loans may be structured such that they are not securities under securities law, and in the event of fraud or misrepresentation by a borrower, lenders may not have the protection of the anti-fraud provisions of the federal securities laws. Loans are also subject to risks associated with other types of income investments. Investments in debt instruments may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non-payment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (sometimes referred to as "junk") are typically subject to greater price volatility and illiquidity than higher rated investments. As interest rates rise, the value of certain income investments is likely to decline. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. Changes in the value of investments entered for hedging purposes may not match those of the position being hedged. The Fund is exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices. The impact of the coronavirus on global markets could last for an extended period and could adversely affect the Fund’s performance. No fund is a complete investment program and you may lose money investing in a fund.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Star ratings do not reflect the effect of any applicable sales load. Hollow stars denote Morningstar Extended Performance Ratings and are considered estimates based on the performance of the fund's oldest share class, adjusted for fees and expenses.

©2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Past performance is no guarantee of future results.