Shalabh Mehrish's questions to Eagle Point Credit Company Inc (ECC) leadership • Q2 2025
Question
Shalabh Mehrish from VinsonCap Advisors asked about the potential causes for the recent significant sell-off in CLO equity closed-end funds. He also inquired about the pace of loan spread compression and sought details on the geographic focus of the new collateral manager partnership.
Answer
CEO Thomas Majewski attributed the sell-off to general market uncertainty, such as tariff concerns, which can cause a flight from perceived risk and a swing from premium to discount pricing for closed-end funds. He noted that the pace of loan spread compression has slowed significantly. He also disclosed that the first manager partnership (Muzinich & Co.) is US-based, and the new, second partnership is with Muzinich Europe, extending a successful formula.