Eagle Point Credit Vs. Oxford Lane Capital: Which 21%+ Yielding Fund Is The Better Buy?

2025-05-01 09:41:02 ET

Summary

• ECC and OXLC invest shareholder capital into CLO equity, offering high yields with an elevated risk profile. Which is the better option for your portfolio?
• Both funds have high fees and declining NII, but ECC's distributions are better covered, making it a potentially safer bet.
• Not only that, but ECC's price returns show less NAV decay over time, which is likely a result of the fund's more concentrated approach.
• For both principal protection and payout coverage, we prefer ECC.

Last fall, we covered a couple of high-yielding closed end funds, including Eagle Point Credit ( ECC ) and Oxford Lane Capital ( OXLC ).

In articles titled " Eagle Point Credit: Is This 21% Yield Sustainable? ", and " Oxford Lane Capital: Is This 19% Yield Sustainable? ", we touched on the funds' underlying makeup, examined the dividends, and ultimately argued that both of these high-profile investments looked like a ' Sell '....

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