Eagle Point Credit Co Inc (ECC)
NYSE NYSE Primary 
XFRA 
Eagle Point Credit: Why I'm Buying The Notes And Preferreds But Avoiding The Common Stock
ECC is seeing a shift towards a more aggressive portfolio, which increases risk for common equity shareholders in various ways. Firstly, ECC has meaningful exposure to borrowers in consumer-sensitive sectors that are at the highest risk of rising default rates. Secondly, spread compression continues to pressure net investment incomes (NIIs).
Closed-End Funds: Seeking Stable Yields From CLO Baby Bonds And Preferred
Collateralized loan obligation CEFs offer high yields but come with significant leverage, volatility and higher risk, making them less appropriate for all income investors. Baby bonds and preferred offerings from CLO CEFs provide safer, more stable income, balancing risk-reward when it comes to seeking income. We have new offerings in the space since our last update, leading to greater diversification potential and increasing the viability of setting up a ladder of maturities.
ECC: 23% Yield For The Ostrich In You
ECC sports a 23.2% yield. We go over what the asset class has delivered historically and also what ECC has actually delivered. We tell you which security we own from the ECC suite and why we think it offers a better return profile.
ECC, OCCI Or Neither Of Them: A Pairs Trade For 2 CEFs
I'm currently favoring low-duration debt from CLO CEFs, hedging by shorting overvalued CEFs, and recently initiated a pair trade: Long ECC, short OCCI. ECC's high non-leverage expenses and lower asset yield make it less attractive, despite its larger size and historical outperformance compared to OCCI. OCCI, though smaller, boasts a higher asset yield but also higher non-leverage expenses, with no historical alpha generation.
I Am Loading Up On This 19% Yield: ECC
19% yields should set off alarm bells in your head. Either it's a massive disaster inbound or a massive income opportunity. We look into earnings to determine which scenario exists in ECC. You need cash to live; we find sources in the market for it.
Eagle Point (ECC) Lags Q4 Earnings Estimates
Eagle Point (ECC) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.33 per share a year ago.
Preferred Stocks And More
Two new additions to the HDO Bond Ladder: Baby Bonds ECCU and GAINI, both maturing in 2030. As we enter 2025, the fixed-income landscape offers opportunities despite declining short-term rates, with quality companies providing attractive long-term yields through preferred securities and baby bonds. Investment-grade debt securities with high coupons offer attractive yields. Diversify with staggered call/maturity dates to safeguard income and enhance portfolio stability.
Eagle Point Credit: Pricing Improves And CLOs Remain Hot (Rating Upgrade)
Eagle Point Credit's valuation has compressed, with the premium to NAV falling from 20% to 5%. ECC's distribution yield remains attractive at over 20%, but the future success hinges on a fast-growing market. The private credit market, particularly CLOs, continues to grow, supporting the Fund's business model and potential for future gains.
Eagle Point Credit CEO Tom Majewski On Funds And Income
Founder and CEO Tom Majewski explains Eagle Point's two funds, ECC and EIC, and offering high monthly distributions to investors. CLOs, backed by senior secured loans to large corporations, provide robust cash flow and have shown resilience across multiple credit cycles.
Eagle Point Credit: Mixed Signals, But Net Bullish
Eagle Point Credit's extended reinvestment periods and increased equity mix position it well for resilient yields in a falling rates environment. Declining loan accumulation facilities may preview slower portfolio growth, posing a challenge for net investment income and cash flow. ECC trades at a lower than usual premium to NAV, making the buys relatively more appealing.
Preferreds Weekly Review: Fixed-Rate Preferreds Underperform
We take a look at the action in preferreds and baby bonds through the second week of December and highlight some of the key themes we are watching. All preferred stock sectors declined as longer-term Treasury yields rose; mREITs outperformed due to SOFR Fix/Float and CMT Reset preferreds. BDC GAIN issued a 7.875% 2030 baby bond.
Three Buys In This Fed-Fueled Sell Off
The Fed's revised guidance for only two rate cuts in 2025 caused market panic, despite a current rate cut to 4.25-4.5%. Floating rate instruments like CLOs remain attractive due to their high-yield and low volatility, especially with rates staying above 4%. I identify one ETF and two CEFs for investors looking to take advantage of this panic and new course for the Fed.
