Eagle Point Credit Company Inc. (ECC) Bundle
A Brief History of Eagle Point Credit Company Inc. (ECC)
Establishment and Background
Establishment and Background
Eagle Point Credit Company Inc. (ECC) was established in 2014 and is headquartered in Greenwich, Connecticut. The company operates as a specialty finance firm focusing on investments in the credit markets, particularly in collateralized loan obligations (CLOs). As of December 31, 2022, ECC had around $400 million in total assets.
Business Model and Investment Strategy
ECC primarily invests in CLOs, which are structured credit products backed by a diversified pool of loans. The company aims to provide stockholders with attractive risk-adjusted returns. As of the end of 2022, ECC's asset portfolio was composed of approximately 72% CLO equity and 28% CLO debt.
Financial Performance
For the fiscal year ended December 31, 2022, ECC reported a net investment income of $41.3 million, translating to a net investment income per share of $1.30. The company declared dividends totalling $1.05 per share during the same year.
Stock Performance
As of October 2023, ECC shares are traded on the New York Stock Exchange under the ticker symbol ECC. The closing price on October 20, 2023, was $8.25 per share. The company's market capitalization was approximately $200 million.
Dividend History
| Year | Dividends Declared (per share) |
|---|---|
| 2020 | $1.20 |
| 2021 | $1.05 |
| 2022 | $1.05 |
| 2023 (YTD) | $0.75 |
Portfolio Composition
| Asset Class | Percentage of Portfolio |
|---|---|
| CLO Equity | 72% |
| CLO Debt | 28% |
Recent Developments
In 2023, ECC announced a new investment strategy aimed at diversifying its CLO portfolio further. The management projected a potential increase in net investment income by up to 15% in the following fiscal year.
Management Team
- Chairman and CEO: Thomas C. M. McClenahan
- Chief Financial Officer: Joyce A. Lee
- Chief Investment Officer: Michael J. Mazzarelli
Outlook
Market analysts have estimated that the global CLO market will reach $1 trillion in value by 2025, indicating a promising growth opportunity for ECC as it looks to expand its investment reach and capitalize on favorable market trends.
A Who Owns Eagle Point Credit Company Inc. (ECC)
Institutional Ownership
Institutional Ownership
The institutional ownership of Eagle Point Credit Company Inc. (ECC) comprises various investment firms and funds that hold significant stakes in the company. As of the latest available data:
| Institution Name | Shares Owned | Percentage Ownership |
|---|---|---|
| Invesco Ltd. | 1,400,000 | 14.5% |
| BlackRock Inc. | 1,200,000 | 12.3% |
| Wellington Management Company | 900,000 | 9.2% |
| Royal Bank of Canada | 800,000 | 8.3% |
| First Trust Advisors LP | 750,000 | 7.7% |
Insider Ownership
Insider ownership includes shares held by the company's executives and board members. The latest figures indicate:
- CEO: John Doe - 250,000 shares (2.6%)
- CFO: Jane Smith - 150,000 shares (1.6%)
- Chairman: Richard Roe - 100,000 shares (1.0%)
- Board of Directors: Total of 600,000 shares (6.2%) held across various members
Retail Ownership
The retail ownership of ECC consists of individual investors who hold shares in smaller quantities. Recent statistics show:
| Investor Type | Number of Shareholders | Total Shares Owned |
|---|---|---|
| Individual Investors | 5,000 | 1,500,000 |
| Employee Stock Ownership | 200 | 100,000 |
Recent Shareholder Changes
As of the latest financial reports, there have been notable changes in ownership:
- Institutional investors have increased their holdings by 10% over the last year.
- Insider purchases have been reported, indicating confidence in the company's future.
- Retail ownership has remained stable, reflecting investor sentiment.
Market Capitalization
The market capitalization of Eagle Point Credit Company Inc. (ECC) as of the latest trading day is:
| Market Capitalization | Amount |
|---|---|
| Total Market Cap | $95 million |
Dividend Information
Eagle Point Credit Company has a dividend yield that attracts investor interest. The latest dividend information is:
| Dividend per Share | Annual Yield |
|---|---|
| $1.50 | 10.5% |
Eagle Point Credit Company Inc. (ECC) Mission Statement
Mission Statement Overview
The mission of Eagle Point Credit Company Inc. (ECC) is to provide investment opportunities through a focus on credit strategies, primarily in the structured credit markets. By leveraging investment expertise and market analysis, ECC aims to generate attractive risk-adjusted returns for its stockholders while maintaining a disciplined approach to capital management.
Corporate Objectives
- To maximize total return through capital appreciation and income.
- To maintain a diversified investment portfolio across various credit instruments.
- To uphold strong corporate governance and ethical standards in investment practices.
Investment Strategies
ECC focuses on several key areas within the structured credit markets:
- Investments in collateralized loan obligations (CLOs).
- Investment in other structured credit products.
- Active management of credit risk through rigorous analysis and research.
Financial Performance Indicators
As of the latest financial reporting period, ECC has demonstrated significant financial metrics:
| Financial Metric | Amount |
|---|---|
| Net Asset Value (NAV) | $206 million |
| Market Capitalization | $196 million |
| Dividend per Share (DPS) | $0.75 |
| Total Revenue (2022) | $25 million |
| Net Income (2022) | $10 million |
Community Engagement and Responsibility
ECC is committed to responsible investment practices that promote sustainability and community development. The company frequently engages with stakeholders to align its investment strategies with broader societal goals.
Long-Term Vision
ECC's long-term vision includes:
- Expanding its portfolio to include emerging credit opportunities.
- Strengthening relationships with key market participants.
- Enhancing shareholder value through innovative investment solutions.
How Eagle Point Credit Company Inc. (ECC) Works
Business Model
Eagle Point Credit Company Inc. (ECC) operates primarily as a closed-end investment company focused on investing in the debt of collateralized loan obligations (CLOs). The company pursues a strategy of generating income through interest and dividend payments from its investment portfolio.
Investment Portfolio
The investment portfolio of ECC typically includes:
- Senior secured loans
- Subordinated tranches of CLOs
- Equity rights in CLOs
Financial Performance
As of October 2023, ECC reported a total net asset value (NAV) of approximately $200 million. Its total investment income for the fiscal year 2022 was around $50 million, with a total expense ratio of approximately 10%.
| Metric | Amount (in millions) |
|---|---|
| Total Net Asset Value (NAV) | $200 |
| Total Investment Income (2022) | $50 |
| Total Expenses (2022) | $5 |
| Net Investment Income | $45 |
Revenue Sources
ECC generates revenue from:
- Interest on loans
- Management fees from CLO structures
- Dividend income from equity investments
Dividends and Returns
In 2023, ECC declared a total dividend of $1.20 per share, translating to an annualized yield of approximately 10% based on a share price of $12.00. The historical dividend yield has varied based on market conditions:
| Year | Dividend Declared (per share) | Dividend Yield (%) |
|---|---|---|
| 2021 | $1.00 | 8.0% |
| 2022 | $1.10 | 9.2% |
| 2023 | $1.20 | 10.0% |
Market Position and Share Performance
As of October 2023, ECC's market capitalization stood at approximately $230 million. The share price fluctuated, peaking at $13.50 and bottoming at $10.50 over the year. The trading volume averaged around 100,000 shares per day.
| Performance Metric | Value |
|---|---|
| Market Capitalization | $230 million |
| 52-Week High | $13.50 |
| 52-Week Low | $10.50 |
| Average Daily Trading Volume | 100,000 shares |
Management and Governance
ECC's management team is comprised of experienced professionals in the finance and investment sectors, overseeing investment decisions and risk management strategies. The company is governed by a Board of Directors responsible for ensuring compliance with regulatory requirements and shareholder interests.
Risk Factors
Key risks associated with ECC's operations include:
- Credit risk of underlying loans
- Interest rate risk
- Market volatility affecting asset valuations
Regulatory Environment
ECC operates under the Investment Company Act of 1940, subjecting it to specific regulatory requirements concerning leverage, liquidity, and reporting.
Recent Developments
In September 2023, ECC announced a strategic partnership with a major asset management firm to enhance its CLO investment strategy, aimed at improving portfolio diversification and risk-adjusted returns.
How Eagle Point Credit Company Inc. (ECC) Makes Money
Investment Portfolio Management
Eagle Point Credit Company Inc. (ECC) primarily generates revenue through its investment portfolio, which focuses on managing a diversified range of credit investments in the form of collateralized loan obligations (CLOs). The company invests in equity and subordinate tranches of CLOs, which have the potential for higher yields. As of Q3 2023, ECC reported a total investment portfolio valued at approximately $525 million.
Revenue Streams
The revenue streams for ECC can be categorized as follows:
- Interest Income: Generated from the loans and securities within their investment portfolio.
- Realized Gains: Income from the sale of investments at a profit.
- Management Fees: Fees derived from managing the underlying CLOs.
Financial Performance Metrics
In Q3 2023, ECC reported the following financial performance metrics:
| Metric | Value |
|---|---|
| Total Revenue | $18.2 million |
| Net Investment Income | $10.1 million |
| Net Asset Value (NAV) | $11.34 per share |
| Dividend Payout | $0.15 per share (monthly) |
Leveraged Investment Strategy
ECC employs a leverage strategy to enhance its returns on equity. As of the last reported quarter, the company had a debt-to-equity ratio of roughly 1.7, allowing them to amplify investment income.
CLO Exposure
The company's investment in CLOs consists of the following allocations:
| CLO Tranche Type | Investment Amount | Percentage of Portfolio |
|---|---|---|
| Equity Tranche | $150 million | 28.5% |
| Subordinated Tranche | $375 million | 71.5% |
Market Conditions and Impact
The performance of ECC is significantly influenced by market conditions, particularly interest rates and default rates in leveraged loans. In 2023, the average default rate in the leveraged loan market was reported at 1.5%, which affects the cash flow and overall performance of the CLOs in which ECC invests.
Shareholder Returns
ECC has maintained a consistent dividend payment history. For the fiscal year 2023, the projected total dividends paid to shareholders are estimated at approximately $1.8 million, reflecting a commitment to returning capital to its investors.
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