Eagle Point Credit’s Q1 NAV Drops 26.8% as April Rebound Takes Hold

Overview

• Eagle Point Credit said net asset value fell 26.8% in the first quarter after loan prices slid, with software names and caution linked to the war in Iran weighing on marks.
• Management kept the quarterly distribution at $0.06 per share and deployed about $100 million into new positions at a 18.9% weighted average effective yield.
• The company reported a near 9% NAV increase in April and said prices for loans and its CLO equity positions continued to firm into May.
• Leaders outlined a shift to add infrastructure credit and other structured assets to lessen reliance on CLO equity and to support steadier income over time.
• The portfolio is concentrated in CLO equity backed by large, syndicated corporate loans, which can swing in value quickly, and software exposure was about 10.8% at quarter end.