ECCV - ECC: Invest In CLOs With This 18% Yield CEF
2024-05-11 02:09:26 ET
Summary
- Eagle Point Credit Company primarily invests in risky sections of collateralized loan obligations (CLOs), offering high rewards.
- ECC has maintained a 16% average yield and a current yield of 18.67% over its ten-year run.
- This article covers the holdings, risks, leverage, and characteristics of this fund and discusses suitability for investors of various risk levels.
Introduction
The Eagle Point Credit Company ( ECC ) is a closed-end fund that primarily invests in collateralized loan obligations ("CLOs"), and primarily in the riskier sections of them. These are the junior and equity tranches (explained later), which carry the highest risk within a CLO, but also offer the largest reward. In seeking these rewards, ECC has been able to generate quite a return over its lifespan....
ECC: Invest In CLOs With This 18% Yield CEF