Eagle Point Income Company (NYSE:EIC) is a closed-end fund that invests in the debt securities of middle-market companies in North America, which are typically private companies with annual earnings between $10 million and $100 million. The fund is managed by Eagle Point Credit Management LLC, which has over $4 billion in assets under management.
Eagle Point Income Company was launched in 2014 and had an initial public offering of $150 million. The fund invests primarily in senior secured loans, second lien loans, mezzanine debt, and preferred equity. The fund's investment objective is to generate high current income with capital appreciation as a secondary objective.
As of December 31, 2021, the fund had total net assets of approximately $714 million and a portfolio of 157 investments. The fund's top holdings are in the healthcare, energy, and technology sectors. The fund's current distribution rate is 7.9% and is paid monthly.
Eagle Point Income Company provides investors with exposure to the middle-market lending space, which is typically not accessible to retail investors. The fund offers diversification benefits as it invests in a portfolio of debt securities issued by companies in various sectors and industries. Additionally, the fund's monthly distribution rate provides investors with a consistent income stream.
It is important to note that like all closed-end funds, Eagle Point Income Company can trade at a premium or discount to its net asset value (NAV). The fund's management team employs a disciplined approach to managing the portfolio and minimizing volatility. However, the fund's investments in high-yield debt securities carry credit risk, interest rate risk, and liquidity risk, which may affect the fund's performance.
Overall, Eagle Point Income Company may be suitable for income-seeking investors who are willing to accept the risks associated with high-yield debt securities and the potential volatility of closed-end funds. As with any investment, investors should perform their due diligence and consult with a financial advisor before making any investment decisions.
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