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# Eagle Point Credit: Why I'm Buying The Notes And Preferreds But Avoiding The Common Stock (Archive)
- URL: https://www.huntingalphas.com/eagle-point-credit-why-im-buying-the-notes-and-preferreds-but-avoiding-the-common-stock-archive/
- Published: 2025-04-06T20:00:00.000Z
- Updated: 2026-02-28T16:14:22.000Z
- Description: Risk-aware CLO credit strategy prioritizing resilient cash flows to safeguard downside.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, ECC, CEF

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- ECC is seeing a shift towards a more aggressive portfolio, which increases risk for common equity shareholders in various ways.
- Firstly, ECC has meaningful exposure to borrowers in consumer-sensitive sectors that are at the highest risk of rising default rates.
- Secondly, spread compression continues to pressure net investment incomes (NIIs).
- But on the bright side, the valuations are rather undemanding and the relative technicals vs SPX500 point toward a balanced fight between the bulls and the bears.
- I think ECC's cash flow is robust enough to not hurt the claims of its debt security and preferred shareholders. And the yield in these instruments is attractive in a risk-off environment. So I rate these securities a 'Buy', but the common stock a 'Neutral/Hold'.

Read the full article [here](https://seekingalpha.com/article/4773319-eagle-point-credit-buying-notes-and-preferreds-but-avoiding-common-stock?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*