(FCT) First Trust Senior Floating - Ratings and Ratios

The First Trust Senior Floating Rate Income Fund II (NYSE:FCT) is a closed-end investment fund primarily focused on senior floating-rate loans. These instruments are typically tied to variable interest rates, offering protection against rising rates. The fund is designed to provide regular income with reduced sensitivity to interest rate fluctuations compared to fixed-rate debt securities. FCT is managed by First Trust Advisors L.P. and primarily targets institutional and individual investors seeking stable cash flow from corporate credit exposure.

From a technical perspective, FCT has shown recent stability in its price action. The fund is trading near its 20-day and 50-day simple moving averages (SMA), both slightly above its current price of 10.16. The 200-day SMA at 9.89 indicates longer-term upward momentum. The Average True Range (ATR) of 0.07 reflects low volatility, suggesting tight trading ranges. Average 20-day volume of 88,950 shares indicates moderate liquidity.

Fundamentally, FCT manages approximately $331.60 million in assets, giving it scale to diversify across a range of senior loans. The funds structure allows it to capitalize on the demand for floating-rate debt, which is often favored by investors in rising interest rate environments. Its focus on senior secured loans typically provides higher recovery rates in the event of default compared to subordinated debt.

3-Month Forecast: Based on the convergence of the 20-day and 50-day SMA near current price levels, FCT may experience short-term consolidation. The low ATR suggests minimal downside risk, with potential support near the 200-day SMA at 9.89. If interest rates rise as expected, demand for floating-rate instruments could increase, potentially benefiting FCT. The funds AUM growth will depend on market conditions and investor appetite for senior loans.