Company: ECC-PD
Filing Date: 2025-08-12
Form Type: N-CSRS
Source: 0001104659-25-076373
Chunk: 2

Company: Eagle Point Credit Co Inc.
Filing Date: 2025-08-12
Form: N-CSRS
Chunk 2
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 time and lead to stronger CLO equity cash flows going forward. ▪ Continued generating strong recurring cash flows from our investment portfolio in excess of total Company expenses and common stock distributions. ▪ Paid monthly common distributions of $0.14 per share. We believe our portfolio continues to have potential for additional upside. In our view, CLOs are not particularly sensitive to interest rate movements, as underlying broadly syndicated loans (“BSLs”) and CLO liabilities are both principally floating rate. The weighted average expected 2 yield 3 of our CLO equity portfolio (excluding called CLOs), based on current market values and expected future cash flows, was 18.8% as of June 30, 2025, which we believe represents an attractive potential return. Our portfolio continued to generate strong recurring cash flows in the first half of 2025 amid a rapidly shifting market landscape. The second quarter started with heightened concerns relating to global trade and its impact on economic growth, followed by tensions in the Middle East. Market concerns have subsided, and the stock market led a broader rebound across asset classes. We observed a healthy increase in CLO trading activity during late April and May, and reset and refinancing activity picking up meaningfully. We took advantage of dislocated market conditions as they appeared throughout the first half of 2025, while remaining committed to our disciplined strategy. Specifically, we deployed $169 million into CLO equity at compelling valuations, priced 4 new issue majority CLO investments, largely before the volatility observed in the second quarter and completed 13 resets and 8 refinancings. With our portfolio’s 3.3 year WARRP, we remain confident in the inherent optionality embedded within our portfolio, particularly as reset and refinancing opportunities have resumed after a relatively quiet period in March and early April during the dislocation. Looking forward, we continue to see attractive CLO equity investment opportunities in the secondary market with loss-adjusted expected yields in the mid- to high-teens. Similar to the downturns that we’ve witnessed over the past several years, the recent drawdown was relatively short-lived and the rally in the overall markets came quickly. The recovery in CLO equity typically lags the recovery in loans, which in turn lags the recovery in stocks. With stocks and loans higher than early April levels, we expect CLO equity to similarly follow suit assuming overall market stability. We continue to prudently and actively manage the Company’s capital structure while raising capital to take advantage of available