Nuveen Floating Rate Income Fund vs Prospect Capital

Nuveen Floating Rate Income Fund and Prospect Capital Corporation are compared on this page to illustrate how their business models, financial performance, and market context differ. The information is presented in a neutral, accessible manner, focusing on essential factors without guidance. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

JFR

Metric

PSEC

$1.27B

Market Cap

$1.30B

N/A

Potential Profit

-11.35%

N/A

Analyst Rating

Sell

Investment Analysis

Nuveen Floating Rate Income Fund

JFR

Pros

The Nuveen Floating Rate Income Fund targets a high level of current income primarily through investments in floating-rate senior loans, which adjust with interest rates, providing some inflation protection.
The fund demonstrates strong long-term performance with a 5-year NAV annualized return around 8.3%, indicating stable income and capital appreciation potential.
Nuveen is the largest closed-end fund provider by assets under management, offering experienced management and access to leveraged investment strategies that can enhance income.

Considerations

The fund uses leverage, which can increase volatility and risk, potentially magnifying losses during adverse market conditions.
A substantial portion of the portfolio is invested in below investment grade loans, exposing investors to higher credit risk and potential default.
Distributions sometimes include return of capital and capital gains components, which may create tax inefficiencies or indicate payout sustainability concerns.

Prospect Capital

PSEC

Pros

Prospect Capital Corporation invests primarily in direct lending and financing to middle-market companies, benefiting from tailored credit opportunities and diversified structures.
Its portfolio is diversified across sectors, reducing exposure concentration risk and enhancing resilience versus single-industry risk.
Prospect Capital has historically maintained a steady distribution yield, appealing to income-focused investors looking for current income.

Considerations

The company faces elevated credit and default risk inherent to below investment-grade private debt lending, which can impact earnings in downturns.
Its stock and NAV performance are sensitive to economic cycles and interest rate changes, increasing volatility for shareholders.
Liquidity constraints in private credit and a complex regulatory environment could pose operational and valuation risks.

About The Companies

Nuveen Floating Rate Income Fund (JFR)

The Nuveen Floating Rate Income Fund (JFR) is a type of investment known as a closed-end fund. Its main objective is to generate a high level of current income. To do this, it primarily invests in senior loans, which are a form of corporate debt. These loans are 'floating rate', meaning the interest they pay can adjust over time, often in line with broader market interest rates. The fund focuses heavily on 'secured' senior loans, which are backed by specific company assets, and also invests in some high-quality unsecured loans. It may also hold a smaller portion of its assets in other types of debt securities. As with any investment, it's important to remember that the value of the fund can go down as well as up, and past performance is not a reliable indicator of future results. The fund is managed by Nuveen Fund Advisors, LLC.

Prospect Capital (PSEC)

Prospect Capital Corporation (PSEC) is a publicly traded business development company (BDC) that provides private debt and equity to middle‑market US companies. With a market capitalisation of about $1.27 billion, it aims to generate current income for shareholders through interest, fees and dividend distributions from a diversified portfolio of senior secured loans, subordinated debt and equity investments. PSEC has historically offered a relatively high dividend yield, though dividends are not guaranteed. The company uses leverage and active portfolio management to enhance returns, which can amplify both income and losses. As a closed‑end fund listed on an exchange, its share price can trade at a premium or discount to net asset value (NAV). Key considerations for potential investors include credit risk, interest‑rate sensitivity, liquidity and dividend variability. This is educational information only and not personalised financial advice; investors should assess suitability, review regulatory filings and consider independent advice.

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Nuveen Floating Rate Income Fund vs Prospect Capital

Comparison Snapshot

Investment Analysis

Nuveen Floating Rate Income Fund

Pros

Considerations

Prospect Capital

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy JFR or PSEC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Nuveen Floating Rate Income Fund vs Guild Holdings

Nuveen Floating Rate Income Fund vs Root

Nuveen Floating Rate Income Fund vs Oaktree Specialty Lending

Frequently asked questions

Comparison Snapshot

About The Companies

Nuveen Floating Rate Income Fund vs Prospect Capital

Comparison Snapshot

Investment Analysis

Nuveen Floating Rate Income Fund

Pros

Considerations

Prospect Capital

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy JFR or PSEC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Nuveen Floating Rate Income Fund vs Guild Holdings

Nuveen Floating Rate Income Fund vs Root

Nuveen Floating Rate Income Fund vs Oaktree Specialty Lending

Frequently asked questions

What is the fundamental purpose of a closed-end fund like Nuveen Floating Rate Income Fund in comparison to a corporate stock like Prospect Capital Corporation?

How do leverage and asset type influence risk and return in these two securities?

What does ‘floating-rate’ mean for Nuveen Floating Rate Income Fund’s income stream?

Why might a high 5-year NAV return be relevant when comparing these two investments?

How do credit quality and portfolio composition affect risk for each stock?

What should I consider about distributions for these securities?

How do interest rate changes influence these two investments differently?

What role does liquidity play in the risk profile of these two securities?

What is the importance of diversification when considering these two stocks?

What should a beginner understand about evaluating these two securities before investing?

Is it possible to infer which is riskier from the provided information alone?

Educational disclaimer

Comparison Snapshot

About The Companies