- Eagle Point Credit Company is exposed to the Equity Tranche of Credit Loan Obligations which are among the highest risk credit investments available.
- While most of ECC's assets have maturity dates 3-6 years in the future, short-term economic risks may still limit recovery potential.
- Recent economic data suggest a rise in jobless claims and a potential decline in the Federal Reserve's willingness to support the economy.
- Eagle Point is also trading at a large 20% premium to its net-asset-value which may exacerbate losses.
For further details see:
Eagle Point Credit: Potential 'Second Wave' Of Economic Declines Exacerbates Risk Factors