Company: ECC-PD
Filing Date: 2025-08-12
Form Type: N-CSRS
Source: 0001104659-25-076373
Chunk: 7

Company: Eagle Point Credit Co Inc.
Filing Date: 2025-08-12
Form: N-CSRS
Chunk 7
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30, 2025, compared to 2.7 years as of June 30, 2024, despite the passage of twelve months. Our focus during stronger markets is to lengthen our WARRP and permanently lower our CLOs’ funding costs through refinancings and resets. When markets turn choppy, which we saw in late March and early April, our extended WARRP provides both protection from loan price volatility and the ability for our CLOs to reinvest in discounted loans, capturing upside as markets normalize. Included within this semiannual report, you will find detailed portfolio information, including certain look-through information related to the underlying collateral characteristics of the CLO equity that we held as of June 30, 2025. M arketO verview 8 Loan Market For the first half of 2025, loan performance temporarily faced pressure, consistent with broader market volatility, but largely recovered by the end of June. Average leveraged loan prices finished the first half of 2025 at 96.48, a modest increase from 96.37 at the beginning of the year. The S&P UBS Leveraged Loan Index, 9 which is a broad index followed by many tracking the corporate loan market, generated a non-annualized total return of 3.0% in the first half of 2025. Gross loan issuance totaled over $441 billion for the first half of 2025, compared to $703 billion for the first half of 2024. However, net new loan issuance for the year has been more measured at just $102 billion due to substantial refinancings, repricings and repayments. Total institutional loans outstanding stood at $1.5 trillion as of June 30, 2025. Credit quality continues to show stability, with the trailing 12-month par-weighted default rate holding steady at 1.11% at the end of June, up slightly from year-end 2024 (0.91%), but well below the long-term average of 2.57%. 10 While many CLO investors focus on default rates, we believe the market does not give enough consideration to loan repayment rates and the reinvestment periods within CLOs, which allows CLOs to purchase loans at a discount in choppier markets. Importantly, with over $118 billion of BSLs repaying at par in the first half of 2025, the 12-month trailing loan repayment rate decreased to 20.9% as of June