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

Eagle Point Credit just cut its dividend by 57% following net asset value falling by 18.57% in a single quarter to $5.70 per share. The CEF's Series D Preferreds have sold off in response, with their $1.6875 per share annual coupon currently driving a 9.32% current yield. These benefit from an asset coverage of at least 200% for their preferreds, with the recent dividend cut also a positive for managing the dip in recurring cash flows.