From Seekingalpha · The Investment Doctor · · 40s
Eagle Point Credit Too Risky For Me
Eagle Point Credit's preferred shares face pressure from rising rates and thin coverage ratios.
In brief
Eagle Point Credit's preferred shares face pressure from rising rates and thin coverage ratios. Eagle Point Credit's preferred shares face pressure from rising interest rates and tightening coverage ratios. Originally reported by Seekingalpha.
Eagle Point Credit Pressure
Eagle Point Credit faces NAV pressure from realized losses and rising interest rates.
Preferred Shares at Risk
Eagle Point Credit's Series C term preferred offers 7.3% yield but coverage ratios are tightening.
Mandatory Redemption
Mandatory redemption in 2031 with 2% penalty for missed payments provides limited protection.
Investment Recommendation
The Investment Doctor rates Eagle Point Credit's common and preferred shares as 'hold' due to elevated risks.
The takeaway
Eagle Point Credit's preferred shares face pressure from rising interest rates and tightening coverage ratios.
