Eagle Point Credit Co

ECC

Market cap $766M

Eagle Point Credit Co. offers a high 26.4% yield but faces ongoing share price declines and trades at a discount to NAV. ECC's portfolio is heavily weighted toward CLO equity, exposing it to elevated credit risk and sensitivity to high interest rates. Despite sufficient cash flow to support distributions, persistent NAV erosion and limited growth potential warrant caution for new accumulation.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight the ten best CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select 10 CEFs every month from around 500 closed-end funds.

August saw continued gains across major indexes, with RSP and Dow outperforming the tech-heavy benchmarks toward the second half of the month. As the markets continue to hit and trade near all-time highs, now including the Dow Jones hitting all-time highs, I've been continuing to build up my cash position. At the same time, every month I do some buying to keep the income compounding on itself over the long term.

GREENWICH, Conn.--(BUSINESS WIRE)--Eagle Point Credit Management LLC (“Eagle Point”), a private credit investment manager, announced today the addition of Regan Gilbride as Managing Director, Client and Partner Solutions. She will be reporting to Kyle McGrady, Senior Principal and Head of Client and Partner Solutions at Eagle Point. In this role, Ms. Gilbride will lead the firm's institutional investor services function, managing investor onboarding, custom reporting and due diligence processes.

We continue our discussion on debt, this time focusing on corporate borrowing. CLOs and BDCs are two pillars of the credit markets, powering the U.S. economy. Securities from these asset classes tend to be volatile due to interest rates and credit health, but have safer preferreds/baby bonds.

Eagle Point Credit Co LLCs common stock offers high dividends but suffers from high fees and disappointing risk-adjusted returns, making it less attractive for income-focused investors. Eagle Point Credit's ECC.PR.D perpetual preferred stock stands out, trading below par and yielding 8.65%, outperforming ECC's common shares and peer preferreds on current yield. Preferred stockholders benefit from dividend and liquidation priority, plus added security from company leverage restrictions, enhancing the risk profile versus common shares.

Steven Bavaria, from Inside the Income Factory, discusses credit assets like high-yield bonds, senior loans, and BDCs for stable, high-yield income, favoring closed-end funds for their resilience and discounts. Expense ratios for BDC ETFs like PBDC appear high due to accounting rules, but actual fund expenses are low—professional management adds only about 0.4%.

Stock market got you down? Take a hefty dose of marvelous income! We dig into the history of this well-run fund to understand its returns. Your lifestyle requires cash; demand it from the market.

GREENWICH, Conn.--(BUSINESS WIRE)--Eagle Point Credit Management LLC (“Eagle Point”), a private credit investment manager, announced today that Ken Yamashita has joined the firm as Managing Director, Head of Client and Partner Solutions for Japan. Mr. Yamashita will report to Kyle McGrady, Senior Principal and Head of Client and Partner Solutions. In this role, Mr. Yamashita will be responsible for maintaining all existing investor relationships and overseeing all institutional business develop.

With the month of July closing out, we are once again seeing the broader equity markets pushing to new all-time highs. As we enter into new all-time highs, we appear to be looking quite stretched on valuations, and CEF discounts have been narrowing.