EIC - EICB: Still An Appealing Choice Reiterate Buy

2024-07-20 03:35:57 ET

Summary

• EICB is a term preferred security from Eagle Point Income Company, a fixed income closed-end fund.
• EICB has a defined maturity date of July 31, 2028, unlike traditional preferred securities.
• EIC's growing assets under management (AUM) benefits the liquidity and pricing of EICB.
• The security offers a current yield of 7.8%, trading close to its par value.

Thesis

CEFs obtain leverage in different ways - via repurchase agreements, via total return swaps or via preferred shares. [[EICB]] represents the exchange ticker for the Series B Term Preferred Stock due 2028 from the Eagle Point Income Company Inc. ( EIC ), a fixed income closed end fund. The CEF did a preferred stock issuance because it provided for a fixed rate, defined maturity and cost leverage instrument....

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