Mongkol Onnuan
As we approach the Thanksgiving holiday in 2022, it may seem that things are looking rather bleak to many market participants after enduring a difficult bear market for most of the year. Talk of recession next year is still
Eagle Point Income: Another High-Yield Income Fund To Consider
Summary
- Eagle Point Income fund holds mostly BB-rated CLO debt and offers a high yield distribution that was recently raised and is well covered by NII.
- Similar to its sibling fund, ECC, the CLOs it holds generate considerable income at potentially lower credit expense than high yield bonds.
- EIC went public in 2019 and to date has paid out $4.62 in cumulative distributions per share.
Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon Runyon
Analyst’s Disclosure:I/we have a beneficial long position in the shares of EIC, ECC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.