Eagle Point Credit Company Inc.

Eagle Point Credit Company Inc. reported an 8% recovery in net asset value during its second quarter 2026 earnings call, driven by a rebound in loan prices and CLO equity valuations following first-quarter volatility. Management attributed the early-year valuation pressure to overstated concerns regarding AI's impact on software borrowers rather than a broad deterioration in credit fundamentals. The company completed 8 resets and 7 refinancings, achieving a weighted average debt cost savings of 22 basis points and extending reinvestment periods. Non-CLO investments increased to 38% of the portfolio, reflecting a deliberate shift toward differentiated opportunities like infrastructure credit and specialty finance. Current leverage stands at 47% of total assets, above the company's long-term target range of 27.5% to 37.5%, and management intends to return leverage to that range over time through NAV appreciation and opportunistic liability management.