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ECC's results more in line with expections, Q1 NII of $0.20 was down 13%. Stock is slightly up today.
- Sean Dougherty
- May 19
- 1 min read
ECC’s Q1 2026 results were more in line with expectations than OXLC’s results.
· NII of $0.20 was $0.01 below consensus expectation
· Future quarterly dividend of $0.18 is declared through Q3 2026
· Current Stock price is $4.03, up $0.06 or 15bps
· Dividend coverage is strong NII/Dividend (111.1%) and Recurring $ Flows/Dividend (261.1%), both historically strong.
· ECC’s underlying loan Market Value down from 97% in Q4 2025 to 95% Q1 2026 is a positive sign but WA loan spread is down a bit.
Tom Majewski was much more positive in this conference call than the last two. I had some problems with my reception on the call but he was upbeat on loan spreads, CLO equity market opening up, and he noted their look through default rate was 32bps compared to the leverage loan market default rate of 1.4% (this only includes bankruptcy or non-payment defaults and doesn’t include distressed exchanges, which are much more frequent. I have read the leverage loan default rate with distressed exchanges is more like 4%- 5%).
Once ECC publishes its conference call transcript, I will add to this post.
Can you comment on the following 1 ECC which according to the last May report is down to only 57% CLO equity with the rest in alternate investments. 2. ECC 18% non US Assets. Also, Related to the XFLT advisor switch vote by July 30. From there Proxy Materials" The King Street Sub-Adviser’s execution of the Trust’s investment strategy will reflect King Street’s dynamic investment approach in the CLO and loan market. The Trust will be actively managed and XA Investments expects that the King Street Sub-Adviser’s execution of the Trust’s strategy will be tactical and opportunistic with respect to both asset allocation and security selection, which XAI believes will be beneficial to the Trust and its shareholders. As …