ECCV - Eagle Point Income: Where This High-Yield CLO Fund Fits In The Risk Stack
2024-07-09 07:37:55 ET
Summary
- Eagle Point Credit Management manages two CLO-focused CEFs, with Eagle Point Income Company offering a nearly 15% yield.
- Closed-end funds offer high yields through various strategies, including collateralized loan obligations, or CLOs.
- EIC invests in lower-rated debt tranches of CLOs, providing high yields and growing dividends, outperforming its larger sister fund, ECC.
- We explore different vehicles to invest in CLOs and explain where EIC fits into the puzzle.
Today, we dive back into the world of high yielding closed end funds. Like most investments, closed end funds, or CEFs, come in a variety of shapes and sizes. They invest in different asset classes with unique strategies. Some use options, some use leverage, and some even have share repurchase programs. Broadly, closed end funds also offer an opportunity to invest in more complex assets such as illiquid securities or, the subject of today's conversation, collateralized loan obligations....
Eagle Point Income: Where This High-Yield CLO Fund Fits In The Risk Stack