Eagle Point Credit: CLO Equity, Treasury Volatility, And The Preferreds

Eagle Point Credit has recently announced a substantial dividend reduction of 57% following an 18.57% decrease in its net asset value per share within a single quarter. In response, the CEF's Series D Preferreds have experienced a sell-off, with their annual coupon of $1.6875 per share now offering a current yield of 9.32%. These preferred shares are supported by an asset coverage of at least 200%, and the recent dividend cut is expected to help manage the decline in recurring cash flows.