Fund Description: XAI Octagon Floating Rate & Alternative Income Term Trust 6.50% Series 2026 Term Preferred Shares, liquidation preference $25.00 per share, redeemable at the issuer's option on or after 03/31/2023 at $25 per share plus accrued and unpaid dividends, and and maturing 03/31/2026. <p> Cumulative distributions of 6.50% per annum ($1.625 per annum or $0.40625 per quarter) will be paid quarterly on 1/31, 4/30, 7/31 & 10/31 to holders of record on 1/15, 4/15, 7/15 & 10/15 prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). Dividends paid by preferreds issued by closed-end funds can be 0% to 100% eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and can also be 0% to 100% eligible for the dividends received deduction for corporate holders (see page 13 of the prospectus for further information). <p> If the issuer fails to maintain an asset coverage ratio of at least 200% then the issuer is required to redeem the shares of Preferred Stock (see prospectus for further information). <p> This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the trust's senior debt, equally with other preferreds of the trust, and senior to the common shares of the trust. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.