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Stock Analysis & ValuationEaton Vance Senior Income Trust (EVF)

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$5.31
Sector Valuation Confidence Level
High
Valuation methodValue, $Upside, %
Artificial intelligence (AI)101.591813
Intrinsic value (DCF)6.1015
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Eaton Vance Senior Income Trust (NYSE: EVF) is a closed-end fixed income mutual fund managed by Eaton Vance Management, specializing in senior secured floating rate loans. The fund primarily invests in U.S. fixed income markets, targeting diversified sectors to generate high current income while preserving capital. Benchmarking against the S&P/LSTA Leveraged Loan Index, EVF focuses on leveraged loans, which offer floating interest rates, providing a hedge against rising rates. With a market cap of approximately $101 million, EVF appeals to income-focused investors seeking exposure to senior secured debt, a relatively lower-risk segment of the leveraged loan market. The fund’s strategy aligns with the broader financial services sector, particularly within asset management for income generation. Its long-standing presence since 1998 underscores its established track record in navigating credit markets.

Investment Summary

Eaton Vance Senior Income Trust (EVF) presents an attractive option for income-seeking investors, given its focus on senior secured floating rate loans, which provide yield and interest rate protection. The fund’s net income of $14.6M and diluted EPS of $0.73 reflect stable performance, supported by $22.9M in operating cash flow. A dividend yield of ~6.3% (based on a $0.53/share annual payout) enhances its appeal. However, risks include exposure to credit defaults in leveraged loans and reliance on Eaton Vance’s management. The low beta (0.375) suggests lower volatility relative to equities, but the fund’s modest market cap may limit liquidity. Investors should weigh its income stability against sector-specific credit risks.

Competitive Analysis

Eaton Vance Senior Income Trust (EVF) competes in the niche of senior secured loan-focused closed-end funds, leveraging Eaton Vance’s credit expertise and economies of scale. Its primary competitive edge lies in its focus on floating rate loans, which are resilient in rising-rate environments. The fund’s benchmark alignment with the S&P/LSTA Leveraged Loan Index ensures transparency and performance comparability. However, EVF’s small size ($101M market cap) may limit its ability to diversify as extensively as larger peers. Unlike broader fixed-income funds, EVF’s concentrated strategy avoids interest rate duration risk but exposes it to sector-specific credit cycles. Competitors with larger AUM may offer lower expense ratios or more diversified portfolios, but EVF’s specialization in senior loans provides a differentiated value proposition for yield-focused portfolios.

Major Competitors

  • Blackstone Strategic Credit Fund (BGB): Blackstone Strategic Credit Fund (BGB) is a larger competitor ($1.2B+ market cap) investing broadly in leveraged loans and high-yield bonds. Its scale allows for greater diversification and lower expense ratios, but it lacks EVF’s exclusive focus on senior secured loans. BGB’s performance is more correlated to high-yield markets.
  • Eaton Vance Floating-Rate Income Trust (EFT): Another Eaton Vance fund, EFT ($700M+ market cap), similarly targets floating-rate loans but with a broader mandate, including subordinated debt. EVF’s tighter focus on senior loans may appeal to risk-averse investors, though EFT’s larger size provides cost advantages.
  • BlackRock Floating Rate Income Strategies Fund (FRA): BlackRock’s FRA ($500M+ AUM) emphasizes floating-rate bank loans, competing directly with EVF. BlackRock’s global credit platform offers research depth, but EVF’s senior loan specialization may provide better risk-adjusted returns in volatile markets.
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