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]

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 [5][20] - The 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 [7][22] - 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 [8][9] Business Line Data and Key Metrics Changes - The decline in NII was primarily due to a significant drop in SOFR and spread compression on syndicated loans, adversely impacting earnings from the CLO equity portfolio [6][15] - The company deployed approximately $120,000,000 of gross capital across 27 CLO debt purchases and nine CLO equity purchases during Q1 2025 [13] - 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% [16][17] Market Data and Key Metrics Changes - 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 [18] - The S&P UBS Leveraged Loan Index generated a total return of 60 basis points during Q1 2025, with a recent increase of 1.8% for the year as of May 23 [14] Company Strategy and Development Direction - The company is focused on capitalizing on market volatility by purchasing CLO debt and equity at discounted prices, which is expected to yield positive returns over time [11][24] - The management aims to extend the weighted average remaining reinvestment period of the CLO equity portfolio and seeks longer reinvestment period opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management indicated that the decline in NII is largely driven by the drop in short-term rates, and the new distribution rate reflects the company's near to medium-term earnings potential [24] - The company believes it is well-positioned to continue generating strong returns for shareholders despite current market conditions [25] Other Important Information - The company declared three monthly distributions of $0.13 per share for the third quarter of 2025, a decline from previous distributions [9][21] - As of April 30, 2025, the company had $33,000,000 of cash and undrawn revolver capacity available for investment [19][22] Q&A Session Summary Question: About the reduction in dividend distribution - Management clarified that the reduction in dividend distribution is due to changes in SOFR and not related to capital losses, emphasizing that the majority of the portfolio is CLO BBs which fluctuate with rates [26][36] Question: Clarification on CLOs and default rates - Management confirmed that the change in distribution rate is principally driven by the change in SOFR, with no credit-related issues affecting the portfolio [35][37]

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]

Company Overview - Eagle Point Income Company (EIC) aims for high current income and capital appreciation by investing primarily in junior debt tranches of CLOs, focusing on BB-rated CLO debt[13] - Up to 35% of EIC's assets can be invested in CLO equity tranches[7, 13] - EIC's total market capitalization is $499.9 million[13] - EIC pays a monthly distribution of $0.13 per share, resulting in an 11.1% distribution rate[13] - Cumulative common distributions per share since IPO total $10.02[13] CLO Market & Strategy - BB-rated CLO debt has historically shown a low default rate of 4 bps per annum[14] - From 1996 to Q1 2025, the cumulative default rate on BB-rated CLO debt was 1.1%[28] - As of March 31, 2025, the weighted average effective yield on EIC's CLO portfolio was 11.12%[53, 54] - As of March 31, 2025, 74% of EIC's portfolio investments were in BB-Rated CLO Debt[56]

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2] - The article updates a prior comparison of preferred shares of Eagle Point Income Co Inc., specifically focusing on those with the longest maturities [3] Group 2 - The author has a beneficial long position in shares of IBHH, IBHI, and EICA through various financial instruments [4] - Seeking Alpha emphasizes that past performance does not guarantee future results and that no specific investment recommendations are provided [5]

Group 1 - The article revisits a member of the Eagle Point family, indicating ongoing interest in this sector [1] - A variety of topics have been covered in recent weeks, including real estate, business development companies, and dividend funds, suggesting a broad analysis of investment opportunities [1] Group 2 - There is no indication of any stock or derivative positions held by the author, emphasizing an unbiased perspective [2] - The article does not provide specific investment recommendations, highlighting the importance of individual investor suitability [2]

Group 1 - The article highlights the investment strategy of focusing on undercovered and unappreciated Canadian dividend stocks, which are excellent companies with solid values that pay dividends [1] - The individual mentioned in the article, Nelson, retired from the corporate world at the age of 39 and now manages his own investment portfolio full-time [1] Group 2 - No specific companies or stocks are mentioned in the article, and there are no positions held by the author in any of the companies discussed [2] - The article does not provide any investment recommendations or advice regarding the suitability of investments for particular investors [3]

Core Viewpoint - The article emphasizes the positive outlook on collateralized loan obligation (CLO) ETFs and closed-end funds (CEFs), advocating for investment in these financial instruments [1]. Group 1: CLO ETFs and CEFs - CLO ETFs have been positively received in the market, with the author consistently promoting them as a viable investment option [1]. - The author has also supported several CLO CEFs with buy ratings, indicating a strong belief in their potential for income generation [1]. Group 2: Author's Position - The author holds a beneficial long position in specific CLO-related securities, including ECC, OXLC, JAAA, and JBBB, through various financial instruments [1].

EAGLE POINT INCOME COMPANY QUARTERLY UPDATE – Q4 2024 FEBRUARY 2 0 , 2025 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 purcha ...

Financial Data and Key Metrics Changes - For the year 2024, the company generated a GAAP return on equity of 21% and a total return on common stock of 24.8% assuming reinvested distributions [9] - The company paid cash distributions of $2.40 per share, representing about 15.2% of the average stock price during the year [9] - The NAV as of December 31 stood at $14.99 per share, a 1% increase from September 30 and a 4% increase from the beginning of 2024 [12][30] Business Line Data and Key Metrics Changes - The company received recurring cash flows of $16.1 million or $0.82 per share in the fourth quarter, up from $13.1 million or $0.76 per share in the prior quarter [10] - Net investment income and realized gains were $0.54 per share in the fourth quarter, consistent with the previous quarter [27] - The company issued approximately 2.5 million common shares at a premium to NAV, generating NAV accretion of $0.05 per share during the quarter [13] Market Data and Key Metrics Changes - The S&P UBS leveraged loan index generated a total return of 2.3% for the quarter and 9.1% for 2024, with loans up 70 basis points in January [20] - New CLO issuance reached $59 billion in the fourth quarter, leading to a record $202 billion for the full year [21] - The trailing twelve-month default rate rose slightly to 0.9% as of year-end, still below the historical average of 2.6% [24] Company Strategy and Development Direction - The company continues to deploy significant capital into new CLO investments, which are expected to make their first cash payments in 2025 [11] - The management remains focused on maximizing yields and believes that CLO equity exposure enhances the portfolio's earnings ability [15] - The company is considering increasing its allocation to CLO equity, which is generally less rate-sensitive than CLO double B's [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to weather economic cycles and generate compelling risk-adjusted returns [34] - The company is actively managing its portfolio in response to changes in short-term rates and is prepared to deploy additional capital into CLO equity [34] - Management expects default risk to remain low for the foreseeable future, given the current economic conditions [25] Other Important Information - The company declared monthly distributions of $0.20 per share through June 2025 [29] - As of January 31, the company had over $30 million of cash and revolver capacity available for investment [31] Q&A Session Questions and Answers Question: How do you see CLO debt liability spreads trending over the next couple of years? - Management indicated that CLO debt tranches have performed well historically and expect spreads to continue to trend tighter over time, despite facing reinvestment risks [39][43] Question: Could you highlight the risks in CFOs compared to CLOs and how high are you willing to go with your allocation to CFO and CLO equity? - Management stated that they target no more than 35% in CLO equity, with a hard minimum of 65% in CLO debt, and emphasized the selective nature of CFO investments [46][50] Question: How do you see the relationship between cash yields and effective yields developing? - Management explained that while cash yields remain attractive, effective yields are lower due to assumptions about recovery rates and market conditions, and they are actively managing liability costs [61][72]