Eagle Point Income Company Inc. (EICA)

Eagle Point Income Company Inc (EIC) Q4 2025 Earnings Call Transcript

Eagle Point Income Company Inc. Series A Preferred offers a stable, low-volatility income stream with a 5% coupon and October 2026 maturity. EICA trades near par, yielding a 6.08% yield to maturity, outperforming comparable short-term bond and money market funds by about 100 bps. Credit risk is minimal due to 1940 Act coverage requirements, positioning EICA as a conservative alternative for short-duration investors.

EIC remains a unique closed-end fund focused on junior debt of collateralized loan obligations amid a volatile credit environment. EIC has proactively reduced its monthly distribution again, balancing lower cash flows with strategic share repurchases and preferred share redemptions to support NAV. The fund's approach, compared to peers like ECC and OXLC, has led to modest outperformance as EIC navigates CLO market disruptions and high-profile bankruptcies.

Eagle Point Credit offers attractive risk/reward on both common and preferred shares, supported by strong net investment income and robust asset coverage. EIC's preferred shares are well covered, with an asset coverage ratio of 285%, far exceeding the 200% regulatory minimum, enhancing their safety profile. The Series B preferred (EICB) yields 7.75% with a mandatory redemption by July 2028, trading near par and offering a 410 bps spread over Treasuries.

Eagle Point Income Co Inc (EIC) Q3 2025 Earnings Call Transcript

Eagle Point Income Co Inc and its preferred stock EICC offer high yields and stable income, standing out in today's fixed income market. EICC provides an 8% annual cumulative distribution and 8.20% yield to maturity. EICC is rated a buy for its limited credit risk, high yield, and strong relative value versus peers, making it a compelling income investment.

Eagle Point Income Company Inc. CAL NT 26 (EICA) offers a 6.24% yield to maturity with only one year remaining until its October 2026 maturity. EICA stands out versus other short-term vehicles, providing a 2.24% yield pick-up over the current 4% Fed Funds rate and superior risk-adjusted returns. Protections under the 1940 Act and a seasoned management team mitigate credit risk, making EICA a robust short-duration option despite underlying CLO exposure.

5 Closed-End Fund Buys In The Month Of July 2025

Eagle Point Income Co Inc (EIC) Q2 2025 Earnings Call Transcript

CLOs have been punished in 2025 with ETFs and closed end funds showing significant deterioration. EIC has outperformed ECC but has recently cut the distribution and trails passive ETFs over the last year. We explore EIC's recent performance, valuation, and outlook.

EIC's NAV has been consistently declining due to shrinking net investment income and reduced NAV premium, driven by lower credit spreads and base rates. The recent dividend cut to $0.13/share offers only marginal coverage, leaving the payout vulnerable to further headwinds. Eagle Point Income's floating-rate portfolio is highly sensitive to Fed policy, so likely rate cuts threaten both income stability and future distributions.

We closed out the first half of 2025, making it an appropriate time to give the overall CEF space a fresh look for potential opportunities. As the broader equity indexes have been performing quite well, discounts in the CEF space have narrowed overall. The best relative value more broadly is in the municipal bond space and the "hybrid" funds.

We review the CEF market valuation and performance through the first week of July and highlight recent market action. CEF sectors rallied this week, with tightening discounts pushing valuations into an expensive zone. Debate continues on CEF distribution sustainability, especially for equity funds like UTG.