Eagle Point Credit Releases Earnings and New Presentation

Eagle Point Credit (NYSE:ECC) has released earnings for the quarter ending 3/31/2018 and concurrently released a presentation of data on Powerpoint.

The powerpoint can be found here.

Eagle Point has term preferreds and baby bonds outstanding which we have owned at various times although the recently called ECCZ 7% baby bond took us (personally) out of their shares for now.  We do have some of the term preferreds in the Medium Duration Income Portfolio.

ECC is a specialty finance company (not a BDC) and they invest in CLOs (collateralized loan obligations).  Looking over this presentation you can see why we are only comfortable owning this during good economic times.  There is a lot of “trust me” in these investments–so you better trust management if owning ECC issues.

15 thoughts on “Eagle Point Credit Releases Earnings and New Presentation”

  1. Are you guys bidding ‘all or nothing’? I’ve found that sometimes can be a detriment with thinly traded equities even though the share price reaches my bid price. I’ve also ended up with some odd number of shares when I don’t place that restriction on my bids (lol).

    1. I never use all or nothing… An with illiquids I have found a neat trick when I sell illiquids. I will put low bid in and if it doesnt attrack buyer, I pull it back to next ask price, reset, then send them off blind on market sell. And almost always I get a higher sell price than my original ask price that wouldnt sell.
      And by watching level two I can sense some goofy stuff and exploit for better terms by a few cents.
      I sometimes trade in extreme illiquids..I mean 3 or 4 trades a year illiquids. So I will take any I can get. A few times I have bougnt the dreaded 1 share purchase, but not often. Most of the times on these I may get 60-70 shares on a 100 share bid. But most of the time I get them all anyways.

    2. With low commissions ($2 per trade at Vanguard in my case) all-or-none rarely makes sense on the buying side. 1 cent/share on a 200-share lot is all that is.

      Selling, perhaps a different matter. The institutional buyers, who pay per share not per trade, often nibble for one share for price discovery. I don’t want to sell a $25 share for a $2 commission to some guy on Wall Street. I wish Vanguard had a minimum share feature on the sell side but they don’t. On the sell side, say I’m wanting to sell 500 shares, I will often offer them in 100-share lots with all-or-none on each lot. Stops the nibblers.

  2. Speaking of term dated, back in for 400 shares of LANDP at $25.38. Probably in its pseudo descent to par come Sept. 2018. I aint buying that line of thinking. Its gonna live on until near 2021. Goes monthly exD next week so this was a good entry point buying in on sub 52 week low today.

    1. It is going to live on–I am counting on it. Thanks for the heads up–got to head to fido where I already have 400 and see if it fits in.

    2. Just did a small limit order at 25.39–doubt I will get it as the ask is 25.54, but either way works for me.

        1. I guess there was a bulk sell right when I looked. I saw last price was 25.42 but I saw low price of day was 25.36,and the then present bid was a ridiculous low 25.20. So I basically split the middle at 25.38 and it instantly executed all 400 shares.

          1. Looks like it didnt trade again after my purchase. A bit strange, since mine instantly executed despite a 25.52 ask.

        1. It was part of my attack I launched to pickup GAINO, GAINN, GAINM, LANDP and one other. Still waiting on GAINM – but just may let it go now that MP-D is in play.

          Are we happy with the price action on NSS?

          1. Its going as planned. Being past call and acting anchored to par it will continue drifting upward until exD. Probably sneak over $25.60 by exD date since next payment is north of 57cents come end of June. CPE-A has surprisingly ran past next divi, plus par price. Looks like I bought in at great spot a few weeks ago at $50.78. Trading is assuming it will live on past next divi. At ~10% I have to continue holding.

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