CEF Market Weekly Review: Eagle Point Is Tired Of CLO Equity

ADS AnalyticsInvesting Group LeaderFollow5ShareSavePlay(5min)Comment(1)SummaryWe review the CEF market valuation and performance through the third week of February and highlight recent market action.CEF sector NAVs were stable, with price action mainly driven by tightening discounts.CLO Equity CEF OXLC experienced a 12% NAV drop in January, pressured by tighter loan spreads and sector-specific credit issues.ECC is pivoting away from pure CLO Equity, now allocating over a third of its portfolio to ABS and regulatory capital relief transactions.Distribution cuts at ECC and SPMC, with ECC's yield at 13% and SPMC at 17% of NAV, continue to weigh on sector prices and discounts.I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » bymuratdeniz/iStock via Getty Images Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We alsoThis article was written byADS Analytics13.67K FollowersFollowADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Seeking 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.