Eagle Point Credit focuses on CLO equity and junior debt tranches, offering high yield but elevated risk, particularly for common shareholders. ECC's net investment income is pressured by realized and unrealized losses, with only $0.067 per share attributable to common shareholders in Q1. The asset coverage ratio for preferred stock recently fell below the 200% threshold, prompting ECC to retire notes and restore compliance.
Income investors hunting for double-digit yield keep landing on the same ticker: Eagle Point Credit Company (NYSE:ECC).
Eagle Point Credit (ECC) remains a strong sell due to unsustainable distributions and rapid shareholder value deterioration. ECC's heavy exposure (67%) to CLO equity tranches amplifies risk, especially in periods of economic weakness or systemic credit distress. Net asset value per share has collapsed from $13.39 in 2021 to $4.17 in Q1 2026, reflecting persistent capital erosion.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| ABB Alexander Bjornager Bonde Danske Bank A/S | 9 | $41.89 | $33.3 | -$8.59 | -20.51% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 38,600 | $242,201.15 | $142,820 | -$99,381.15 | -41.03% |
Daren Blonski Fermata Advisors LLC | 16,153 | $109,905.68 | $59,766.1 | -$50,139.58 | -45.62% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 6,716 | $32,562.12 | $24,849.2 | -$7,712.92 | -23.69% |
Jeffrey Gilbert Balboa Wealth Partners | 89,903 | $681,668.61 | $332,641.1 | -$349,027.51 | -51.2% |
| NYSE Exchange | US Country |
Eagle Point Credit Company Inc. is a specialized financial entity structured as a closed-ended fund, which was initiated and is actively managed by Eagle Point Credit Management LLC. With its primary focus on the fixed income markets within the United States, the company strategizes its investments to generate returns for its investors. Since its inception on March 24, 2014, Eagle Point Credit Company Inc. has been committed to identifying and investing in opportunities that offer potential for income and growth, mainly through instruments that are not commonly accessible to individual investors. The organization is based and operates in the United States, adhering to the regulatory and market environments specific to U.S. financial operations.
This offering focuses on investing in the equity and junior debt segments of CLOs. By targeting these tranches, Eagle Point Credit Company Inc. aims to capitalize on the higher yield potential associated with the increased risk levels of these investments. These tranches are particularly appealing for their potential to deliver above-average returns compared to senior tranches of CLOs or other fixed income options. The investments primarily comprise below investment grade U.S. senior secured loans, which are loans given to companies with lower credit ratings that offer higher interest rates to compensate for the increased risk of default. This strategy leverages the expertise of the management team in selecting and managing high-risk, high-reward assets within the fixed income domain, focusing specifically on the dynamics and opportunities of the U.S. market.