Eagle Point Credit Company (NYSE:ECC) Q4 2025 Earnings call February 17, 2026 10:00 AM ET Company ParticipantsChristopher Nolan - SVP of Equity ResearchDarren Dougherty - Managing DirectorErik Zwick - Managing Director of Equity ResearchKenneth Onorio - CFO and COOThomas Majewski - CEOTimothy D'Agostino - Senior Research AssociateConference Call ParticipantsGaurav Mehta - Managing Director and Senior Equity Research AnalystMickey Schleien - Managing Director and Senior AnalystOperatorLadies and gentlemen, t ...

Eagle Point Credit Company (NYSE:ECC) Q4 2025 Earnings call February 17, 2026 10:00 AM ET Speaker6Ladies and gentlemen, thank you for standing by. We'll be getting started in about two minutes. Once again, please stand by. We'll be getting started in approximately two minutes. We do thank you for your patience. Please continue to hold. Greetings, and welcome to the Eagle Point Credit Company fourth quarter 2025 financial results conference call. At this time, all participants are in listen-only mode. A ques ...

Financial Performance - Net investment income per share was $008 in Q2 2025, compared to $013 in Q2 2024[7] - Distributions declared and paid were $0105 per share for each quarter from Q2 2024 to Q2 2025[7] - Net asset value was $206 per share at the end of Q2 2025, a decrease from $243 in Q2 2024[7] - Total fair value of investments was $2415 million in Q2 2025, down from $2521 million in Q2 2024[7] - Net assets were $1574 million in Q2 2025, compared to $1524 million in Q2 2024[7] Portfolio Composition and Activity - New investments were $0 million in Q2 2025, a significant decrease from $288 million in Q2 2024[9] - The portfolio consisted of 50% first-lien secured debt, 11% second-lien secured debt, 37% CLO equity, and 2% other investments as of Q2 2025[9] - The weighted average yield of total investments at current cost was 116% in Q2 2025, compared to 118% in Q2 2024[9] - 608% of the company's investments are in senior secured debt[22] Debt and Non-Accrual Status - Principal amount of debt outstanding was $1153 million in Q2 2025[7] - Total non-accrual investments at fair value were $50 million in Q2 2025[28]

Performance Overview - In May 2025, Volta Finance's net performance increased by +3.3%, bringing the cumulative performance from August 2024 to +10.7% [4][5] - The positive macroeconomic environment contributed to the recovery of investments in CLO Debt and CLO Equity, which had previously experienced volatility [4][5] Macroeconomic Context - The macroeconomic environment improved, with a 90-day tariff rollback from the U.S. towards China, leading to a sharp rise in both European and U.S. equity markets [5] - U.S. inflation rates decreased to 2.3% year-on-year, while euro-area inflation remained stable at 2.2% [6] - The U.S. Q1 GDP contracted by an annualized 0.3% due to pre-tariff stockpiling, while the Eurozone experienced a growth of +0.3% quarter-on-quarter [6] Credit Market Performance - Credit markets showed strong performance in May, with the European High Yield index tightening by around 50bps and closing at 300bps [7] - U.S. BBs returned +3% for the month, while U.S. High Yield returned +1.7% and Euro High Yield decreased by +1.3% [7] Loan Fundamentals - Default rates in the U.S. remained steady at 4.4%, but there was an increase in downgrades, with 12% of B- exposures downgraded to CCC by S&P [8] Cash Position and Investments - Volta Finance maintained a cash position of approximately 10% of its NAV at the end of May, having deployed €10.7 million into CLO debt tranches and two warehouses [9] - The cash flow generation remained stable at €28.1 million over the last six months, representing close to 21% of May's NAV on an annualized basis [9] Asset Class Performance - CLO Equity tranches returned +5.9% while CLO Debt tranches returned +2.8% during May [10] - The dollar reached a six-week low against the Euro at $1.15, with minimal impact on long dollar exposure [10] NAV and Share Information - As of the end of May 2025, Volta's NAV was €271.8 million, equating to €7.43 per share [11]

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]

Performance Overview - Volta Finance's net performance for April 2025 was negative at -2.4%, bringing the performance from August 2024 to date to +7.1% [4] - The volatility in investments, particularly in CLO Debt and CLO Equity, was noted post-liberation day, affecting the valuation of underlying assets [4] Market Conditions - April 2025 was characterized by high market volatility due to macroeconomic and geopolitical events, including aggressive tariff policies announced by President Trump [5] - The U.S. stock indices experienced sharp declines, although there was a partial recovery by the end of the month following a 90-day tariff pause for non-retaliating countries [6] - The U.S. jobs report showed resilience with 177,000 jobs added, while GDP contracted by -0.3% in Q1 2025, leading to increased recession risks [6] CLO Market Activity - The European High Yield index widened by approximately 40 basis points, while Euro Loans lost 1 point, closing at 97.80px [7] - CLO BB tranches reported total returns of -1.5%, with the U.S. High Yield returning -1.07% and Euro High Yield at -1% during the same period [7] - The default rate in the U.S. stood at approximately 4.3%, while Europe maintained a low default rate of 0.3% [8] Portfolio Management - The company increased cash holdings to approximately 16% of NAV by the end of April through active management, receiving €7.5 million from called CLO Equities [9] - Cash flow generation remained stable at €28.5 million over the last six months, representing close to 22% of April's NAV on an annualized basis [10] - As of the end of April 2025, Volta's NAV was €262.9 million, equating to €7.19 per share [12] Investment Performance - CLO Equity tranches returned -3.6%, while CLO Debt tranches returned -0.9%, indicating a consistent performance relative to the overall product returns [11] - The dollar's volatility negatively impacted the fund's performance by -0.64%, prompting a reduction in USD exposure to approximately 12% [12]

Financial Performance - Net investment income per share was $009 in Q1 2025, consistent with Q4 2024[7] - Distributions declared and paid remained steady at $0105 per share across all quarters presented[7] - Net asset value decreased to $209 per share in Q1 2025 from $230 in Q4 2024[7] - The company experienced a net decrease in net assets resulting from operations of $(012) per share in Q1 2025[7] Portfolio Composition and Activity - Total fair value of investments was $2432 million in Q1 2025, down from $2609 million in Q4 2024[7] - The number of portfolio investments decreased to 58 in Q1 2025 from 62 in Q4 2024[7] - New investments totaled $160 million in Q1 2025, while sales and repayments amounted to $195 million, resulting in net investment activity of $(34) million[9] - First-lien secured debt constituted 49% of total investments in Q1 2025, while CLO equity represented 38%[9] Debt and Leverage - Principal amount of debt outstanding remained constant at $1253 million across all quarters presented[7] - Debt to equity ratio was 084x in Q1 2025, compared to 078x in Q4 2024[7] Non-Accrual Investments - Total non-accrual investments at current cost were $161 million in Q1 2025, a decrease from $185 million in Q4 2024[27]