Eagle Point Income Co Inc.

It is a publicly traded closed-end fund listed on the New York Stock Exchange under the ticker EIC. Unlike traditional private credit drawdown funds, it offers daily liquidity to investors through exchange trading while holding an illiquid portfolio of CLO equity and junior debt tranches. The vehicle files quarterly public reports including full portfolio holdings on Form N-PORT.

The portfolio is managed by Eagle Point Credit Management, led by founder and CEO Thomas P. Majewski. Majewski and his team have specialized in CLO investing since before the 2008 financial crisis. The manager also oversees Eagle Point Credit Company (NYSE: ECC), a related listed closed-end fund focused on CLO equity.

The fund invests primarily in junior debt tranches and equity of collateralized loan obligations. These CLO tranches sit below senior secured notes in the payment waterfall and therefore carry higher yields and higher risk. The underlying collateral pools consist of broadly syndicated leveraged loans, which are floating-rate instruments. The fund may also hold CLO equity positions when relative value favors them.

Returns come from two sources: the spread between the interest earned on the underlying loan portfolio and the cost of CLO liabilities, and principal repayments flowing down the capital structure to junior noteholders. Because the fund invests in the most junior tranches, it captures residual cash flows after senior noteholders are paid. In a rising-rate environment, the floating-rate nature of the underlying loans can increase the cash flow distributed to these junior positions.

Both are NYSE-listed closed-end funds managed by Eagle Point Credit Management. Eagle Point Credit Company (ECC) focuses primarily on CLO equity, which is the first-loss and highest-upside tranche. Eagle Point Income Company (EIC) focuses on CLO junior debt, which sits one step above equity in the capital structure and typically offers more predictable current income. The two vehicles operate independently with separate boards.

Default risk in the underlying loan portfolio is the primary credit risk. CLO structures concentrate corporate credit exposure, and junior tranches absorb losses first. Liquidity risk in stressed markets is another concern: while the fund is exchange-traded, the underlying CLO positions can become severely illiquid, potentially widening the fund's discount to net asset value. Regulatory risk also applies, as CLO markets have faced periodic scrutiny from financial regulators.

The fund itself can issue preferred stock or borrow under credit facilities as a closed-end fund, which is a form of structural leverage on top of the embedded leverage already present within each CLO investment. The manager's public filings detail the fund's current leverage ratios and debt composition. This double layer of leverage amplifies both returns and volatility relative to direct loan investments.