ECC: Still Delivers High-Yield Income Despite Declining NAV

2025-05-28 13:34:00 ET

Summary

• Eagle Point Credit Co LLC remains attractive for long-term, patient income investors seeking high yield, but recent price volatility and NAV decline warrant caution.
• The Series D preferred shares, ECC.PR.D, offer a safer, nearly 9% yield with lower risk, making them ideal for conservative income investors.
• ECC's recurring cash flows continue to cover distributions, and the fund's CLO resets provide additional flexibility and portfolio safety.
• While I still hold ECC common shares, I recommend the Series D preferreds for those prioritizing safety and steady income amid market uncertainty.

Although I have reviewed Eagle Point Credit Co LLC ( ECC ) multiple times since October 2022, I wanted to take an updated look now that it has reported Q1 2025 (quarter ending March 31) earnings results. In the recent past, I have rated ECC a Strong Buy for income-oriented investors such as me and others who have retired and want a steady passive income stream. I most recently reviewed ECC in September 2024, when I wrote that the mostly CLO (collateralized loan obligation) Equity fund delivered a yield of over 19% paid monthly....

Read the full article on Seeking Alpha

For further details see: