Eagle Point Income Co Inc (44124033)

The thesis of this article is that you can generate much higher returns by investing in unrated preferred stocks and baby bonds. This is where the bargains are. This is also an educational article on how one might rate or value an unrated security in order to see if it is undervalued versus similar or similarly rated securities. We do this case study by using unrated Eagle Point Income's term preferred stock ticker EICC.» Mehr auf seekingalpha.com

Eagle Point Income focuses on CLO debt, offering attractive floating-rate exposure and strong asset coverage, especially for preferred shareholders. I favor EICA term preferreds due to their seniority, mandatory maturity in October 2026, and robust coverage, minimizing risk vs. other series. Buying EICA at a discount offers a nearly 9.9% total return in 16 months, outperforming comparable US government bonds.» Mehr auf seekingalpha.com

CLO CEFs offer high yields, attractive long-term returns, and low duration, making them appealing in rising rate environments despite recent volatility. Misconceptions about CLOs—such as price declines signaling vulnerability or CLOs causing the GFC—are unfounded. EIC stands out with a 7% discount, 11.8% yield, lower management fees, and sector-leading total NAV returns, making it an attractive opportunity now.» Mehr auf seekingalpha.com