Eagle Point Income: Why I Own A Combination Of The Common And Preferred Shares

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Skip to contentHome page Seeking Alpha - Power to InvestorsNov. 15, 2025 11:40 AM ETEagle Point Income Co Inc (EIC), EICB StockEIC, EICBThe Investment DoctorInvesting Group LeaderCommentsSummaryEagle Point Credit offers attractive risk/reward on both common and preferred shares, supported by strong net investment income and robust asset coverage.EIC's preferred shares are well covered, with an asset coverage ratio of 285%, far exceeding the 200% regulatory minimum, enhancing their safety profile.The Series B preferred (EICB) yields 7.75% with a mandatory redemption by July 2028, trading near par and offering a 410 bps spread over Treasuries.All EIC securities are rated a "buy" due to solid dividend coverage and asset protection. Selection among EICA, EICB, and EICC depends on desired duration.Andrii Dodonov/iStock via Getty ImagesIntroductionA lot of income investors appear to be surprised to see the distributions of BDCs and CLO-focused vehicles come under pressure. That shouldn’t come as a surprise, as the majority of the investments in those vehicles are floating rateMore on my IG serviceConsider joining European Small-Cap Ideas to gain exclusive access to actionable research on appealing Europe-focused investment opportunities, and to the real-time chat function to discuss ideas with similar-minded investors!This article was written byThe Investment Doctor23.25K FollowersThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of EIC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.I also have a long position in EICA and EICC, but no position in EICB right nowSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For YouTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.