Eagle Point Credit Company Inc. (NYSE:ECC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 10:00 am ET

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Eagle Point Credit Company Inc. (NYSE:ECC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Thomas P. Majewski

level of 134 basis points at quarter end. Our weighted average AAA cost continues to be meaningfully in the money today. As always, our advisors' deep CLO investing experience provides us with a notable advantage as we seek to generate additional value for our portfolio and our stockholders. We have dry powder available as we see attractive opportunities in the primary and secondary markets.

Beyond seeking to maximize the value of our CLO -- existing CLO investments and looking to be opportunistic with respect to the CLO price dislocation that we've seen lately, we continue to maintain solid visibility on our new investment pipeline for the next few quarters as well. To sum up, we continued in the third quarter to receive recurring cash flows on our portfolio in excess of our common distributions, interest and other expenses.

Recurring cash flows in the fourth quarter were greater than they -- so far in the fourth quarter were greater than received during all of the third quarter. Loss adjusted weighted average effective yield on our CLO equity portfolio implied by the current fair value, current marks on our portfolio is 24.07% as of September 30th, and we continue to raise accretive equity capital during the quarter.

Given the low continued default rates being experienced, we remain very constructive on the overall macro environment from a longer-term perspective. As such, we maintain a strong opportunity to utilize our advisors' strength and create additional value for our portfolio.

We will also continue to selectively direct resets and refinancings, which would -- we would expect to increase future cash flows to our CLO equity securities. And of course, we'll be very proactive in our management of the Company, creating value for our shareholders. We thank you for your time and interest in Eagle Point. Ken and I will now open the call to your questions.