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Added Eagle Point Income Term Preferred

Finally I was able to buy a small position in the new 7.75% Eagle Point Income Company term preferred. The issue is trading under ticker EICPB right now – soon to be EICB. I was unable to buy on Fidelity but was able to get a small position on eTrade.

Someone asked why the Eagle Point Income (EIC) 7.75% preferred when there are other Eagle Point Credit Company (ECC) preferreds (and notes) available at a higher current yield. For me it is simply a case of the EIC issue being somewhat higher quality because the CLO portolio of EIC contains mostly debt tranches of collateralized loan obligations, while the portfolio of ECC contains the junior equity tranches of collateralized loan obligations. Being fairly conservative I chose to go with a little more safety–more aggressive investors may well choose the ECC issues.

I will add this to the ‘laundry list’ of positions.

10 thoughts on “Added Eagle Point Income Term Preferred”

  1. Good luck with it!
    I have the Eagle Point Credit preferred.
    I have one additional allocation for speculative preferred stock and am considering either EIC-B and PACW-P at this point.

  2. The Brokers got this with a 3.15% discount approx. 24.21 or 8% where are rates on similar yield and similar risk preferred? I don’t see this going over par and the brokers have plenty of room to walk this down to sell the entire issue.

    1. I keep thinking of EICA as being the similar risk preferred. But perhaps it is so thinly traded it is not a comp?

  3. The ticker at Fido has changed to EICB as of this morning, but they are still calling it ‘grey market’ and not accepting my bid.

    1. Mystified – they are ‘keeping you safe’ – I guess we are all too stupid to make our own decisions. This is why I also have multiple eTrade accounts.

  4. Anyone notice who the lead underwriter of this offering is ? You may be holding their notes.

  5. My low bid did not hit today even though on my screen I see it went below my limit order. One thing I see at least at one broker is it only showed about 77,000 shares traded. I am thinking people don’t yet know about this issue which is fine or they are holding back waiting to see how low it will go.

    1. My bid hit today for 24.78 and gives me a half position or full depending on how this continues to play out.

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