OXLCG - Eagle Point Credit Vs. Oxford Lane Capital: Which 21%+ Yielding Fund Is The Better Buy?
2025-05-01 09:41:02 ET
Summary
- ECC and OXLC invest shareholder capital into CLO equity, offering high yields with an elevated risk profile. Which is the better option for your portfolio?
- Both funds have high fees and declining NII, but ECC's distributions are better covered, making it a potentially safer bet.
- Not only that, but ECC's price returns show less NAV decay over time, which is likely a result of the fund's more concentrated approach.
- For both principal protection and payout coverage, we prefer ECC.
Last fall, we covered a couple of high-yielding closed end funds, including Eagle Point Credit ( ECC ) and Oxford Lane Capital ( OXLC ).
In articles titled " Eagle Point Credit: Is This 21% Yield Sustainable? ", and " Oxford Lane Capital: Is This 19% Yield Sustainable? ", we touched on the funds' underlying makeup, examined the dividends, and ultimately argued that both of these high-profile investments looked like a ' Sell '....
Eagle Point Credit Vs. Oxford Lane Capital: Which 21%+ Yielding Fund Is The Better Buy?