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Stock impact report

ECC.PR.D: Not A Bond And Suitable For Investors With A High Tolerance For Volatility [Seeking Alpha]

Eagle Point Credit Company Inc. (ECC) 
Company Research Source: Seeking Alpha
ECC.PR.D is perpetual preferred equity, not a bond, and sits as equity on ECC's balance sheet, leading to higher duration risk and price swings. Compared to bonds and high-yield ETFs, ECC.PR.D has shown larger drawdowns, making it less suitable for risk-averse investors seeking stable returns. Given tight credit spreads and the potential for future risk-off events, ECC.PR.D is only appropriate for investors with high volatility tolerance in the current macro environment. VitaliyPozdeyev/iStock via Getty Images Thesis We last covered the Eagle Point Credit Company Inc. 6.75% PFD SR D ( ECC.PR.D ) two years ago, when we articulated why the preferred shares represented a very volatile piece of the Eagle Point This article was written by Analyst's Disclosure: I/we have a beneficial long position in the shares of ECCF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation f Show less Read more
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