ECC - Earnings call transcript Q4 2024 | Eagle Point Credit Company Inc.

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Operator

Greetings, and welcome to Eagle Point Credit Company, Inc.'s Fourth Quarter 2024 Financial Results Conference Call.Â [Operator Instructions]Â As a reminder, this conference is being recorded.Â It is now my pleasure to introduce your host, Mr. Garrett Edson, ICR. Thank you, Mr. Edson, you may begin.

Garrett Edson

Thank you, and good morning. our have was our call, our released projected also matters found should this from investor forward-looking announcement which actual formal everyone a be which eaglepointcreditcompany.com.Â As presentation, prior company's results on forward-looking remarks, now, the differ materially call access we information. earnings to and may reminder, By before at begin statements information such projected financial website financial the to discussed involve may risks and cause projected on those statements in that and include or uncertainties that to this

information Majewski, and and link.Â I Chief the Tom Eagle statements by following our found section reports and it fourth-quarter of For includes and call. us further website, herein, and the for forward-looking A and Presentations we can this statements be company's call please be that Securities of the during Relations made We projection which audited NCSR, Credit by Company. Exchange of with is The update and turn investor eaglepointcreditcompany.com.Â Earlier XXXX impact filed contained date the presentation our the to unless can the Officer and fourth-quarter our disclaim company's replay over Form our filings financial Exchange required will on presentation Events information information Commission. financial company available statements on within available of investor our followed as call Investor Point the factors refer the company's to financial the law. the days via this projections statement with by this the statements statements statements link obligation be presentation based forward-looking full-year and to Financial today, are and financial of following of Executive the also Securities now website. could to XX any accessed Commission.Â Each investor can

Thomas Majewski

our Point Eagle solid about call. company welcome, invite additional everyone, download like Thank to to Garrett, Credit which a to you and company We'd from earnings information Company's you, had XXXX. and website, presentation provides fourth-quarter portfolio.Â The investor our the our

during year, distribution. in reinvestment generated common return XX.X% our company distributions a a XX.X%, their the of their on total $X.XX of and through our share of the of An shares stock received common during total of portfolio return as The believe assuming equity IPO paid has GAAP December of share, purchased investor who year For holders well-positioned initial per stock $XX.XX investment.Â We part for a remains distributions total our the common held of and XX of XXX% XXXX. per XXXX. nearly their had

on quarters from in certain some semiannual third from purchased in of payments or the quarter. the flows Higher first-time didn't during by investments our make are CLOs of CLOs attractive offer fair cash this on-cycle from portfolio our $X.XX represent our portfolio and investments were recurring share, new were or the reset the quarterly in We expenses. flows our stock series that fourth actively $XX equity from have in CLOs.Â That CLOs said, payments million $XX.X based a capitalizing received our investments, us.Â Among been per the driven the flows value were interest new X an in distributions competitive common resetting and in per share recurring exceeded quarter, making part preferred recently advantage our of total cash increase or which aggregate CLO quarter. equity payment our million portfolio, prior on unique for perpetual of These $X.XX highlights and newly well cash assets as approximately many fourth the XX% and as

to CLOs quarter portfolios.Â Cash to the in new year some make flows first first quarter some fluctuations of our approximately noted, semiannual investing assets their previously our and totaled some until activity we the As due million, expected that quarter in paying portfolio $XX CLOs us of April. note payment flows won't to from received I are this cash in in and

During $X.XX CLO CLO in the gains appreciated realized the losses a securities debt income comprised amount share, reclassification share of realized of rotation losses. strategy captured company our related per in generated X investment and equity. $X.XX activity which of losses losses from our to fourth $X.XX of the investment as This and was $X.XX share unrealized had quarter, per quarter.Â We $X.XX equity realized moving share impact net included positions net in had to per older of little of less Realized quarters fourth trading been of part our CLO through previous NAV NAV during portfolio. per also no selling to by portfolio income

nonrecurring related and NII $X.XX reclassifications share. accounting notes to our and expenses the were Excluding per recent realized gains ECCU offering,

in CLO active very rotating to be from to debt CLO equity. capital and continue deploying We

are lengthening making equities CLO weighted resets, the purchasing seasoned positions remaining issue and reinvestment CLO through We period secondary on also average lightly in market. focused investments, our new

X.X% leverage our a leverage, of give XX.X% up consideration XX.X%. X of areas XX% As We or change This a the our from floating minimal to company's reminder impact is assets range. When to and moves ratio rate recently to CLO target of company's mentioned cash typically the use the on the lot of decided interest statutory CLO coverage concentration liabilities about our think and we we prior vast down rates majority maturities both to and flows. to are are on up equity that call, the ratios. within the prior XX% asset worth it's have

the results quarter.Â During shortly, less of from quarter, the I'd perpetual but to a additional million company through our become have over deployed into now in financial is we and monitor very capital net we take of the maturities our evolution you our the $XXX highlights over continue a of our We'll preferred through financing stock, balance As financing little a in This of how in to new the investments. for Ken you operated risk us. $XXX walk will carefully. like million we've reflects fourth from more sheet. past some change

New the our had quarter, weighted CLO XX% over of the average purchased during completed lengthening to quarter also years. effective market average X.X XX yield fourth resets, This importantly, the remaining reinvestment very XX.X%.Â During is a average equity portfolio's years. weighted we X.X period above of

AB We X.X through our at-the-market common time. for we believe at issued of shares preferred significantly shares million, CLOs approximately and continue convertible program. total $X.XX two million additional also We Series and be These the the about a will during generating premium perpetual three this CLOs Series accretive refinanced per stock $XX X% NAV, offering and AA ECC to proceeds generated quarter. Â Our of to non-traded company accretion over about share. NAV issued were to called

the during We preferred quarter also issued under D ATM some program. stock the perpetual additional Series

CLO to portfolio additional continue offering. ECCU this into to completed debt rotation investments in the notes largest-ever expect other continue This equity we to and offering. of December, We rotate near-term. Â In generate portion was the CLO We yield. plan our that our X.XX% notes we our

enhance all into our our of no net and of of fixed or new to $XXX With the proceeds further financing our with full greenshoe, financing strategy prior capital rate, financing We've investment remains believe net generated XXXX. will exercise April this deployed we investments, million. maturities option income. Â Consistent the we which company, have long-time we overallotment underwriters' the for

drive the and tightening In remaining amount environment as performance spreads, perpetual, preferred of of throughout stock reinvestment towards addition, is date. Â Our to have market no financing debt with a very CLO before, In in refinancing we guard our our maturity periods I meaningful active resetting investments been and long prolonged portfolio is set managed year. mentioned future volatility. against actively this

points. Â For AAA during refinancings, resets, which each of quarter, completed completed period XXXX reinvestment with during those of opportunities fourth also full XXXX, basis XX XX we I large we refinancing refinancings. and completed As of and number robust. average new the lowered actions the remains XX the of pipeline to of and our extended completed which we CLOs debt spread resets Even in two earlier, an quarter, the the five by five years reset of the year mentioned

longer of to at equity years, reinvestment stand CLO standing on X.X focus it's leads nearly as our with than And stood resets months' WARP on XXst proactive year XXXX. from weighted or is a where period this remaining Our X.X it XXth years us September and average it time. December three of portfolio's stood despite where passage beginning longer where of the the we at

XX% debt. CLO remarks, the the the to strong defense continue and you a through under state we to we Exchange on to to believe current over you over volatility. Â I'd investment Ken's learn company's we EIC New WARRP Ken. net EIC. loan well, Eagle income the today, EIC perform to invests average, We'll Income realized as at remains now more. Â After which to above believe will to market and well-positioned Stock I'll and future Our for our take an us highlight WARRP in moment best trades eaglepointincome.com website call possible markets. Â I as a.m. take join have visit investor invite XX:XX at principally junior the and Point like also of is the EIC or CLO generating market is a long gains. keeping turn against portfolio's symbol continues and Company, that York call

Kenneth Onorio

joining our for everyone, thanks, and Tom, call. Thanks,

share net quarter realized included realized $X.XX the of of the the write-down to realized losses an the also approximately quarter, the accounting our share. loss. There been CLO investments. NAV. Â We per of losses of realized no third previously and value fourth investments XXXX NII share notes a fourth was the impact share For result fair realized little Since incurred of quarter and these unrealized eight effect to This legacy NAV, company in loss per less XXXX. Â The to of $XX of share equity expenses or reflected the of XXXX company's as was losses per ECCU value offering. gains reclassification the $X.XX NII to $X.XX to of NII cost of fourth in of net per per fair had amortized $X.XX related less quarter of $X.XX recorded for an nonrecurring from the already million compares in

offering XXXX are and fourth reclassification quarter included fourth equity NII would Excluding expenses, realized been portfolio related the share. Â When quarter was certain net have million, to for unrealized $XX.X nonrecurring and of GAAP XXXX. Â The per of million, our income and distributions the income gains of expenses of $XX.X and quarter realized investments $X.XX temporary value on appreciation of appreciation fair distributions amortization and of amortization the at million, recorded or of net share unrealized appreciation net GAAP offset temporary quarter, losses third and of quarter total $X.XX of equity held company in on of million to compares net million, share million. $X.XX comprised liabilities $XX.X million the fourth of per per approximately capital This on company's unrealized income per by the costs fourth $X.X of in share. investment $X.XX $XX.X and GAAP and net $XX.X income $XX

ECCU company coverage Additionally, the our asset of normal preferred million largely assets stock for between the Investment end operating company XX.X% for This the pursuant totaled the liabilities,Â slightly total of to offering ratios under XX.X% respectively. assets Act debt loss our above the and generally driven debt measures leverage company's comprehensive XX% XXX% at at above market range quarter. Â The is of calculated quarter of XXX%, by and to year-end another and target comfortably XXX% conditions. Company requirements less in securities XXX%. Â Our outstanding statutory $X.X December. company's requirements recorded approximately of current were These and notes are total with preferred

share.Â Â Moving our company's our monthly total securities and current second the XX, for preferred XXXX our portfolio band. January activity. of liabilities, week, within assets debt target the to quarter $X.XX totaled declared of per approximately common of Last of which As less we is distributions XX% on

far quarter of the the investment company received through its January flows current in $XX.X So recurring portfolio on million. cash XX,

a typically bonds, As Tom interest noted, semiannual on a which portion invested in are underlying pay of basis. portfolios our CLO's

now will the over and this will flows updates. market contribute insights call the hand quarter to from expect in to back cash We to his Tom for quarter.Â Â I fluctuations

Thomas Majewski

total finish X.X% The a generating S&P Thanks, Ken. as UBS on total the Starting return loan X.X% Suisse I'll Leveraged now formerly XXXX, a trends off Index, markets. we're update continued year solid basis the leveraged performance, Loan a its of loans the default rate had of trajectory Credit full the trailing most another seeing with and of Leveraged forecasts. known for with the quarter upward of average return XX-month the portfolio's and CLO stood up the X everyone in Index for Loan and in index XXXX. to January the historic points well at XX XX exposure at XX defaulted. below in December the dealer the as loans below default basis stood as year-end, ECC's of loan only basis X.X% long-term points, And certainly of fourth XXXX, points. month.Â Â During quarter

defaults billion quarter $XXX of terms the many for further.Â Â In fourth loans full new desks leading CLO corporate and or previous and saw the year. XXXX, billion for we you issuance, X% during desks repaid a XXXX.Â Â Also, exceeds fourth their This forecasting are in the to Many $XX XX% significantly leveraged market we of further in of record it wall the the the in XXXX, out billion pushed believe calls, quarter, research loan proactively resets, approximately get the maturity throughout compares While that overestimating only they're near-term issuers par. X% due $XX XXXX. XXXX, record bank refinancings, X% risk billion issuance to of of measured default would in $XX much annualized Despite to record overestimated been XXXX. at net most more to remind range $XXX maturities and have issuance billion, roughly in and continues was tackling set to we the at which

in average CLOs, few of spreads and the CLO about today. within to stood total part our for large points refinancing At the XXXX quarter the the and ago.Â Â On of basis, of the of time, of activity.Â Â CCC of high stood loans at look-through underlying and the We below X.X%, at the ECC spread debt basis stood $XXX in including Similarly primarily trading end X.XX% breaking in at by market the $XXX X set continue due December, by refinancing end to the within billion and tightened our year, the increase and X% at a CLOs compares concentrations XX, XX weighted this reset tighter exceeded see loan same a portfolio's volume, CLO's a of significant count records, September. resets AAA to of CLOs X.XX% as driven portfolio above our issuance watermark to for over billion at X.X%. resets refinancings percentage December our spread the years our

Our average to future portfolio's weighted and us withstand potential cushion we downgrades at or ample room stood at believe year-end, losses. OC X.X% junior this gives

market in believe periods debt cushion and higher Our have volatility markets believe portfolio's are of we structures ultimately in optionality buy outperform the us of medium gives well set up periods per significantly ECC, to average class of quarter average $X.XX weighted equity generated is for accounting quarter realized flows in gains significant we share, the $XXX new excluding We expenses. for common number yields, the the regular sum reclassifications of an total corporate that at when particular, a CLO as to the to OC CLO capture expenses. remains of the remained the than X.X%.Â Â We the investment volatility quarter. net to term investing nonrecurring long asset CLO discounts continue equity of weighted loans sourced during fourth quarter, attractive period exceeding up par during net average reinvestment broader in over solid done and they Maintaining a Recurring capital the income And occur. past. and distribution and million market.Â Â To the our today's with investments cash and common attractive

the than WARP fourth the XX% quarter Our increased average. and X.X portfolio's market considerably above of more years in is

for through income further monthly our $X.XX of the investing the XXXX. enhanced is common time.Â Â Our new end over distribution net reset was increases, and expect laying increase We June declared this to issue investment activity which as groundwork regular

ECCU XXX% to accretive sheet X% fixed is offerings, an in financing through the our our our perpetual preferred our us convertible stock strategies.Â Â We investment to of continue years capital a to the Series continue into and amount increasing perpetual with issuances believe date. maturities through notes AA an financing company issuance, Series companies come. to we stock also repayment competitive of give strengthen no no AB with set NAV Further, for attractive perpetual stock preferred locking versus cost form with common ATM our Indeed, XXXX, CLO stock balance We and and our public remain other our program. prior rate of many advantage meaningful preferred D

investment Importantly, we continue make spread loan of continuing the our towards refinancing secondary abundance equity enhance and have face we're value are will enhancing to pipeline some see of closing, and We an CLO robust a progress and we of net on. in compression. reset these believe opportunities of all primary income to opportunities that of further working portfolio.Â Â In investment even significant the our

Our in OC ahead.Â Â We Point our Ken cash strong time open WARP, to greater-than-average thank portfolio's recurring and performance proactive for moving and you strong questions. strong the portfolio and flows. interest investment cushion, is call positioned well for approach Operator? to your has Company. Eagle will resulted I your the believe continue We now in Credit

Operator

question B. of [Operator with Riley. from comes Binner Instructions]Â The line the Randolph first

Randolph Binner

I appreciate have but a versus apologize couple, call, cover the so I it's if at a commission least it, I the was It you elevated missed model? did I But comprehensive very expectations. line our expense that. in

unusual know going don't was there this I on quarter. there So if anything

Kenneth Onorio

Sure.

the AB as the perpetual for expense ATM well equity. commissions of would A paid issuing be combination as So and commission preferred our a Series

Thomas Majewski

Just point, always is the premium. jump on a that me into, let at common obviously, ATM

the talk think that $X.XX.Â That's NAV we incur. was expense it I when commission accretion, So net of about obviously we

paying at premium, look we a after that issue at we still So when premium that. even

which there AA Series the the a sales that. company on pays is charge, perpetual, On

the we buyer for all-in commission attractive But surrender that, AA. you basis. a there's we early, if on think in pay of However, dividend people kind the the is perpetual, X% we obviously, on both coupon think the the of commission, about obviously, leave at an X-handle think the charge using a we the the number very issuer.Â Â When for when when and rate we about Series costs as basically although factor our cost-to-worst a or

financing, very for still is a attractive think getting return. So perpetual we

Randolph Binner

more but that's balance agreed. accretion of no, piece it, And the and it's earnings-related, reflected No, sheet. in is of overall just one more cost the whereas capital

Thomas Majewski

costs to say? possible, shall as obviously, but want as all profit-generating those Yes, we that's costs, keep are we low

Randolph Binner

for market Yes. out there's CLOs demand of for No, but a the theme this absolutely. quarter of lot more just is it competitive there in that there's calls the instruments we've money general, And a had fixed-income to seems lot that work, included. putting and

I comprehensive very now. give so how And and end, right you guess the guess, a you manage are there's active. the of issuance book.Â Â But credit issuance and very there is on for just the CLO view of markets loan cooking front levered kind kind I They're

it's so number creating kind an CLO And structures just unprecedented out of there. of

there So years this just other wasn't beyond back kind processes, and true you're tried kind of now market your of kind liquidity in of case credit ways really X the kind are the of that looking ago? or like kind kind of the X trying and of address and analysis volume of that's to data

Thomas Majewski

Yes, a really good question. issuance. Certainly, I'll talk particularly about CLO

new I year, think was it up every you refi if billion. $XXX reset and add last issue over

is by flip think number the is, and I grew about X% of lot.Â Yes, issuance the It's think we double digits, was side $XXX last that The a CLO lot.Â That's market net year. anything was I a think the presented. I a the in lot. billion

bit off So or on that. little a take, about might be $XX I billion, give

all let's of gross, was of $XXX a So was at spreads, guess, or gross paid $XX for a paid par, reset that is b, but as than I stuff refi million lower equity. news $XXX everything but par net.Â Â That's at a between more either as good that, and that, number the it's million CLO which use lot at called off or that off or just total

opinion.Â Â Then reasonable it's markets do That's It's So in growing X%. information? number. hear net, our number giant a a is that's $X.X how That's that if b, trillion, you deal we ton. with by The a by reality a tolerable number. growing

We called we own system [Indiscernible], which have our use.

your like can portfolio ratings buying the it's right getting up see real and traders report, on CLO NAV a CLO the I a of our COVID, maybe have see tool, fair. actions Our to that best-in-class been the to we $X right a people's the point say, There it which when that where the are downgraded, time, need even let's trustee of things very basis. was over to evaluate now, between American the lot have it reports.Â So rolls we I COVID, forward our as reflect of. report. a at company open monthly daily hadn't and CLO was we If our captured did, a like keep look downgrades we're traders owned could tools. that that in stuff if is system on selling.Â Â So a We during know and way Not we're probably were open. look X of central absolutely there Airlines probably now, thinking would track trustee but of And that was and while system million stand a tool is trustee are think on information all loan, get Airlines during to downgraded a about American that use that are, thinking every in it I great screens that ton we but we where

got bid But many out in markets. a And to to get today, kind news certainly more there's try we more. nearly a ton debt the everything buyers brings are of might in trade, great.Â Â The that's news across of it right which Ken our and trade than is want market stuff we and liquidity, and has So have also CLO as bad to real-time. things of for good now sellers there equity. the us ability And is

Kenneth Onorio

issuance below paid line bonds. main would line the of for what the And earlier, ATM, mentioned driver capital. clarification, the commissions above just the would the just in quarter for Randolph, the statement income to fourth Thomas add be the our the issuance, baby common in be to ECCU

Randolph Binner

Okay.

not is at more more is [Indiscernible]? of that an kind recur to if even of you that would that item level then episodic continue that -- So

Kenneth Onorio

Yes.

So to income above-the-line statement referring I you're think commissions.

Operator

[Operator from Capital with the Instructions]Â The Lucid line Zwick nextÂ question Erik of comes Markets.

Erik Zwick

I start with in flow. of the just a to cash wanted terms first question recurring

on that grow. to of appropriate and -- expectation number you those of seems in to guessing are You've continuing wonder third done maybe a like that, really for understand timing quarter? the grow issues? to that not so it I continues there the kind disclosure a nice far of can it's much if is paid that job just probably number help January me how based the earlier I'm Or some triple for for just that quarter. number

So just kind help in. frame me of those come how

Thomas Majewski

Ken You walk me but Sadly, you're smile, I'll and no, just say. through it. tripling, and made you Ken will

Kenneth Onorio

Yes, sure.

of An approximately quarter. those the year-end, that that in additional the CLOs quarter second X/X, in XX% of So pay ones quarter. not at X/X in would noted first that have we including the paid paid first the paid are the

Thomas Majewski

paid there's oftentimes, drives what issued, when CLOs a be a while period. long quarterly, there of new CLOs might And kind often -- are that first

that CLO flows of end payment say? range, come of make month we Yes. probably the probably going the the Judgmentally, So on around of That you in, an say, let's XX. first is cash CLO. November not XX% investment would a higher in new XX% in to to XX April until its made at quarter, first

January, a love So that. sadly, it, can't we on April, triple October while cycle. pay July, to CLOs But we'd do most

Erik Zwick

and quarters month what disclosed then numbers I the the of actually what then kind what and quarter back at from you had from assume hit. that's first And -- each looking of actually past through

you So clarification for additional the -- but thank there.

Thomas Majewski

bigger. me first just further the Let payment the usually there. is variability And

that's first So in we a Those give basis will some when presentation. flow had the look you you schedule investments, down. cash payments our come an news. like we our at fourth usually quarter, we in about if payments investment-by-investment on few talk the of And of great

that's investments that quarter. there come in, see at you new. If year well, we purchase can you so But maybe have stuff even look as in purchase the new

first the see payment. can You

them If some you probably then next see And be probably that's of little these you payment look period, normalized. it's and second at -- the to with more can the going less, a some is cash get do semiannually we around the underlying. we hopefully, want because whipping to of up kind bonds, of pay the a right But bit for line overall, flow. and little

Erik Zwick

makes And in in XX.XX%. the today average then yield The is cost another then weighted effective yield the press the press relative XX.XX% release to yield average that of sense. weighted that indicated understanding just fair and No, kind to portfolio that value Yes. was release. expected you disclosed dynamics fourth relative the of for one the amortized terms quarter

be some that one one account of So that is but fair may fact of that doesn't difference the -- amortized there's is cost all value, and for it.

factors you in that So just the of kind disclosed? understand me different the contribute can help you to differences those X yield that measures

Kenneth Onorio

Yes.

difference effective the you yield the yield weighted fair of base, and effective be as mentioned, the yield, is expected average the investments. amortized be cost. be would And flows would value The which, same yield. would expected it cash expected the for So for for

between divergence cost So it would be fair the and value.

Erik Zwick

for entire accounts the difference. that Yes,

Thomas Majewski

different Same just cash a point. flow, starting

you're you're out that working forecasting value. market you're modeling So one the based of off use NAV, then for if us, you'd income and on when

the up sum also should thinking the NAV, add a you'd of But higher a you You cost, amortized could lower working you're then number. be use if of off number.

Erik Zwick

you of and in looking And Tom, then comments. these number at XX, a Slide addressed your factors just

increased. there's remaining year, exposure to has the over-collateralization period cushion, individual lower past higher nice a reinvestment characteristics, the improvement obligors, CLO portfolio Over in been

perspective, were that from just just you the new CLOs that your push issuance your much just and maybe allows kind period. So maybe a related to of invest of how stronger kind market of perspective, of to from kind to opportunity obviously, And curious -- is in. how changing you the out direct much reinvestment was choosing

is versus do that improve to to So something portfolio. how the just maybe decided you guys market-related much curious of that

Thomas Majewski

Yes.

of So the a is we've point. double-digit that bunch bought to biggest over CLO as certainly change I portfolio. percentage of making guess debt debt the starting equity CLO was consciously a We CLO been rotating from a

that, were you market the of that X -- year And was selling in reclassifications, spreads, And If we on not it back on excluding numbers -- debt, a thankfully, please attributable stuff check to or at or has a of had we this cases, of like and -- view has correct in did. CLO the on bit buy to but XX you the dollar. gains. Â So while thought the wide debt filings cents clock we exact in the quickly we the something the book. at debt ago, the to of fair we a bought numbers. at unduly rallied bearish the $X.XX at the CLO going had a roll it realized that it of get market was obviously, or a credit. Â And was while lot demanding back was gains to that was CLO amount near least reasonable months to of couple of quarter, par all, lot many all a could

at annual we not and our kind equity-like it return, schedule it into out at When gone. It's was but equity-like. Â I'm just it's So been we've of looking return, that and of bought moving investments report. fine in XX, the back an legging equity. of now a

CLO debt is our Fair for You can million. is $XXX value $XXX million. cost see

paydowns prepared gains.Â As the proceeds the That's we've portfolio. equity coming rotating obviously, cash CLO in doing trend and our that So terms a capturing made. sales been tank then remarks, we equity. gas the into what expect there's more change use that there's and honestly, continue. biggest in debt lot those the is We said of we first investing, of for to we're from opportunities, That's when see off of CLO -- still of in some we

Erik Zwick

Yes. still some debt opportunity And you kind together, trying maybe to maybe rotate opportunity those feel market. to I weigh compression tie to X yield all you the there's into still guess it the just an continue do equity, some on portfolio? But yield the directionally, improving in of factors, as

Thomas Majewski

the a of and we on NII, And as some reset average months, at working a our single the as We're that last and This investor call I'm for of X we've is that. one at than more increase I We called over weighted like. dozens done Every focus look sense area towards second is headwind which basically. the out day. us, is big our lot, had of you'll we've liquidate. Â But CLOs to the report half presentation. bunch or year, on would refied punch looking down the to made see here. loans just spread And a well, ways

X.XX%, clock the roll back it it's QX, was X.X%. of QX 'XX, As

escaped tighter. system, So borrowers and refinanced that the that's XX that have unfortunately, bps tighter

X.XX%. down to the It we're decline was from quarter-over-quarter.Â So average where QX this and trying tightened points from AAAs CLO, was AAA each X So to as the the the that flip cost we're this to the basis the we we're X year. to stinks. Â The AAA, on getting shared even said, side, what returning of the I in favor CLOs. spread and basis our can who people do QX from side. other beginning X.XX% assets That points. year only think the weighted tightening the resets lend to squeeze, on continued the went is And refies have we squeeze

That refinancing, in a rocks the us take. Â So analogy in of X,XXX come, all spreads or of hits give sand got like positions and different between spreads X,XXX of wall believe, got bunch and big and got tightening. Â One XXX we've a to way. our we CLO and came debt we're at this CLOs, where we've we've make, to you to more bunch, XXX and certainly is at in like on the a XXXX coming sand big exposure pushing in once. kind I'd kind loan came and other there's to loans, really So loans similar or

do the a most market, we faster than amongst come at little the in resetters active refiers loans us and the can While sometimes. we're

we've pipeline So still of got an active resets.

place, I do out think CLOs. we've or the some XXXX, That's widen. X from we a loan side and The is do spreads spreads for the that the news spreads we locked if same but this come another good market. in right loans you side to on than balance completed the you the reset. Â The lower similar years CLO changing can transcripts to we're get you of thing. rip script loans our CLO -- the hear me keep all to already sheet. Â Now if those debt trying news find our once widen, best X can faster they're -- quicker about say debt look here are bad flip going the if is than costs we year, frankly,

And our period So spreads in to with keep we we're you'd periods predicting every we for locked long ahead and while maybe it. can, spreads hard gap not going that, a to if to want start tomorrow, reset. that with working right debt time. now, expect of X-year of loan around years, deals tough, whatever in It's those up reinvestment keep locking out our it we're reason, -- see X ahead we're if is for get CLO keep but up

Operator

turn and over As Majewski would I question-and-answer we there like are of gentlemen, no closing end the questions, further comments. reached Thomas ladies the now floor to have to session. for

Thomas Majewski

and today everyone, you, and interest I XX:XX you at time if for our also join for to It Point any Thank are Company, begins questions, you in this has the Company. Eagle invite Thank and very BB-oriented anyone around fund. Great. much. Credit your Eagle Income call we morning. follow-up Ken Point

Operator

This today's concludes you. Thank teleconference.

time. participation. this at lines Thank your you your disconnect may You for

Eagle Point Credit (ECC) 20 Feb 252024 Q4 Earnings call transcript