Eagle Point Credit Company (ECC) is a closed-end fund that invests primarily in collateralized loan obligations (CLOs), a type of structured credit. The fund seeks to generate current income and capital appreciation through its investments, with a focus on CLO securities rated in the BB to B range.
As of September 30, 2021, the fund had total net assets of approximately $674 million and a portfolio of investments in 46 CLOs. The fund's top three industries by percentage of net assets were healthcare services, software and services, and communications equipment.
The fund is externally managed by Eagle Point Credit Management LLC, a registered investment adviser that specializes in managing CLO investments. The investment team is led by Thomas P. Majewski, who has over 20 years of experience in the credit markets.
ECC pays a monthly dividend to shareholders, with a current distribution rate of $0.10 per share. The fund also offers a dividend reinvestment plan (DRIP) for shareholders who wish to reinvest their dividends into additional shares of ECC.
Investing in ECC involves risks, including the possibility of loss of principal and fluctuations in net asset value (NAV) due to market and economic conditions. The fund's investments in CLOs are subject to credit risk, interest rate risk, and liquidity risk, among other factors.
Overall, ECC may be suitable for income-oriented investors who are comfortable with the risks of investing in CLOs and seeking a diversified portfolio of these securities. As with any investment, it is important to conduct thorough research and consult with a financial advisor before making any investment decisions.
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