Eagle Point Income Company (EIC) Q2 2025 Earnings Call August 12, 2025 11:30 AM ET Speaker0Greetings. Welcome to Eagle Point Income Company's Second Quarter twenty twenty five Financial Results Conference Call. At this time, all participants will be in listen only mode. A question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press 0 from your telephone keypad.Please note this conference is being recorded. I'll now tu ...

Company Overview - Eagle Point Income Company (EIC) aims to generate high current income and capital appreciation by investing primarily in junior debt tranches of CLOs, with a focus on BB-rated CLO debt[13] - As of June 30, 2025, the total market capitalization of EIC is $501 million[13] - EIC pays a monthly distribution of $0.13 per share, resulting in a distribution rate of 12.0%[13] - The Adviser and Senior Investment Team have approximately $0.8 million invested in EIC, EICA, EICB and EICC[23] CLO Market and Strategy - BB-rated CLO debt has historically exhibited a low default rate of approximately 4 bps per annum from 1994 through Q1 2025[14, 29] - The cumulative default rate on BB-rated CLO debt was 1.1% from 1994 through Q1 2025[29] - The company focuses primarily in junior debt tranches of CLOs, with a focus on BB-rated CLO debt[31] - The CLO market is the largest source of capital for the US senior secured loan market[40] - From 1992 through 2024, the S&P UBS Leveraged Loan Index generated positive total returns in 30 of the 33 full calendar years[42] Portfolio Information (Q2 2025) - The weighted average effective yield on the CLO portfolio was 10.63%[52] - The company's CLO debt investments totaled $379.8 million, and CLO equity investments totaled $127.1 million[52] - The company has exposure to 1,464 unique underlying borrowers[57]

Core Insights - The CLO (Collateralized Loan Obligation) market is experiencing significant challenges, referred to as the "CLOpocalypse," due to tightening cash flows following a decline in the secured overnight financing rate (SOFR) [1] Group 1 - CLO funds across various sectors are beginning to deteriorate as their cash flows tighten modestly [1] - The current economic environment is described as uneasy, which is exacerbating the issues faced by CLO funds [1]

Group 1 - The Conservative Income Portfolio service focuses on outperforming the market through strategies targeting smaller-cap and unrated fixed-income securities like Eagle Point Income (NYSE: EIC) [1] - The portfolio aims to build a Fixed Income Portfolio by selecting the best Preferred Stocks and bonds with high margins of safety, indicating a strong belief in the fixed income sector's potential over the next decade [1] - The service has recently launched Bond and Preferred Stock Portfolios, encouraging investors to participate early [1] Group 2 - The offerings include undervalued fixed income securities, bond ladders, and high-yield cash parking opportunities, appealing to investors seeking income generation [2] - Access to an options portfolio is provided as a bonus, enhancing the value proposition for potential investors [2]

Group 1 - The article reviews Eagle Point Income Co (NYSE: EIC), a fund primarily investing in CLO Debt with a minor allocation in CLO Equity [1] - The fund has experienced a decline due to a recent cut in its distribution [1]

Group 1 - The high-yield credit market has largely recovered from the correction experienced in early spring [1] - Junk bond funds (HYG) and (JNK) are now approximately flat on the year [1] - The BBB credit spread has shown signs of stabilization following the market correction [1]

Group 1 - Collateralized Loan Obligations (CLOs) are pools of debt categorized by rating and risk profile, known as tranches [1] - The current environment features higher interest rates, impacting the performance and attractiveness of CLOs [1] - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Eagle Point Income Company (EIC) Q1 2025 Earnings Call May 28, 2025 11:30 AM ET Company Participants Darren Daugherty - Managing DirectorThomas Majewski - Founder, Managing Partner, CEO & ChairmanDaniel Ko - Senior Principal and Portfolio ManagerLena Umnova - Principal and Chief Accounting OfficerRandy Binner - Managing DirectorSteven Bavaria - Editor/Publisher Operator Greetings, and welcome to the Eagle Point Income Company First Quarter twenty twenty five Financial Results Call. At this time, all partici ...

Financial Data and Key Metrics Changes - The company generated net investment income (NII) and realized gains of $0.44 per share in Q1 2025, down from $0.54 per share in Q4 2024, comprised of $0.40 of NII and $0.04 of realized capital gains [4][5] - The net asset value (NAV) per share decreased to $14.16 as of March 31, 2025, from $14.99 as of December 31, 2024, representing a 5.5% decline [6][20] - Recurring cash flows for Q1 2025 were $16,500,000 or $0.71 per share, compared to $16,100,000 or $0.82 per share in Q4 2024 [6][7] Business Line Data and Key Metrics Changes - The company opportunistically deployed approximately $120,000,000 of gross capital across 27 CLO debt purchases and nine CLO equity purchases during Q1 2025 [11] - The trailing twelve-month default rate decreased slightly to 80 basis points as of March 31, remaining well below the historical average of 2.6% [14] - The company completed one refinancing and three resets of CLO equity positions, lowering debt costs by 45 basis points [15] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index generated a total return of 60 basis points during Q1 2025, with a current year-to-date return of 1.8% as of May 23 [12] - Approximately 5% of leveraged loans were prepaid at par during Q1 2025, indicating proactive management by loan issuers [13] - New CLO issuance in Q1 2025 was $49,000,000,000, down from $59,000,000,000 in Q4 2024, but still healthy by historical standards [15] Company Strategy and Development Direction - The company plans to continue focusing on extending the weighted average remaining reinvestment period of its CLO equity portfolio and seeks longer reinvestment period new issues [16] - The management believes that recent market volatility will provide opportunities for capital deployment into discounted CLO debt and equity [22] Management's Comments on Operating Environment and Future Outlook - Management indicated that the decline in NII was primarily driven by the drop in short-term rates, and the new distribution rate reflects the company's current earnings potential [22] - The company remains confident in its CLO BB securities, asserting that the change in distribution is not related to credit losses but rather to interest rate movements [36] Other Important Information - The company declared three monthly distributions of $0.13 per share for the third quarter of 2025, a decline from the previous distribution [7][19] - As of April 30, 2025, the company had $33,000,000 of cash and undrawn revolver capacity available for investment [16][20] Q&A Session Summary Question: About the reduction in dividend distribution - Management explained that the cash flows have been adequate to cover previous distributions, but the current distribution reflects the company's near to medium-term earnings power in light of fluctuating rates [25][29] Question: Clarification on the impact of default rates on dividends - Management confirmed that the drop in dividend rate is solely due to interest rate movements and not related to capital losses, emphasizing confidence in the CLO BB securities [35][36]

Eagle Point Income Company QUARTERLY UPDATE – Q1 2025 May 28, 2025 1 Important Information This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with Eagle Point Income Company Inc. ("EIC" or the "Company") or any of its affiliates. This presentation is provided for informational purposes only, does not constitute an offer to sell securities of the Company or a solicitation of an offer to purchase an ...