In todays headlines I posted a few hours ago there were earnings that are important to at least some of us.
Eagle Point Income Company (EIC) posted earnings today–and generally they were quite satisfactory. For the collateralized loan obligation (CLO) company I watch a few key items which give me a good hint as to how the company is performing. I watch the net asset value (NAV) from quarter to quarter–in this case the NAV per share grew by 9 cents quarter over quarter which is excellent–large changes down in NAV indicates they are paying too high of dividends. The 2nd item I watch for is can the company raise cash–sell equity? Eagle Point Income has no problem selling equity–selling common shares at prices over net asset value. Additionally they have ‘at the money’ offerings on some preferred shares.
Recall that Eagle Point Income (EIC) is the CLO owner that holds mainly CLO debt tranches–considered safer than equity tranches.
EIC’s press release is here