EIC - EICA: A Great Deal To Like About This 8% 2-Year Baby Bond

2024-02-05 20:53:23 ET

Summary

• EICA is a baby bond issued by Eagle Point with a $25 par value and a maturity date of October 2026.
• The security offers a high yield to maturity of 8% due to its low coupon and retail-oriented issuance.
• EICA has a strong asset coverage of 400%, reducing credit risk and making it an attractive investment.
• The credit spread associated with this issuance is very high, given the low tenor and high asset coverage.

Thesis

Eagle Point Income Company Inc. CAL NT 26 ( EICA ) is a bond issued by a CEF. The security is a 'baby bond':

A baby bond is a fixed income security that is issued in small-dollar denominations, with a par value of less than $1,000. The small denominations enhance the attraction of baby bonds to average retail investors

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