Eagle Point Credit (ECC) Earnings Transcript

Image source: The Motley Fool.

Tuesday, Feb. 17, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Thomas Majewski

• Chief Financial Officer and Chief Operating Officer — Kenneth Paul Onorio

Thomas Majewski, Chief Executive Officer, and Kenneth Paul Onorio, Chief Financial Officer and Chief Operating Officer. Before we begin, I would similar to punctual everyone that the matters discussed connected this telephone see forward-looking statements oregon projected fiscal accusation that impact risks and uncertainties that whitethorn origin the company’s existent results to disagree materially from specified projections. For further accusation connected factors that could interaction the company, the statements and projections contained herein, delight notation to the company’s filings with the SEC. In addition, due to the fact that we are holding this telephone anterior to filing our yearly report, the fiscal results discussed contiguous are preliminary and unaudited, and stay taxable to completion of our year-end audit procedures.

Actual results included successful our yearly study whitethorn disagree from the accusation discussed connected this call, and those differences could beryllium material. Each forward-looking connection oregon projection of fiscal accusation made during this telephone is based connected the accusation disposable to america arsenic of the day of this call. We disclaim immoderate work to update our forward-looking statements unless required by law. A replay of this telephone volition besides beryllium made disposable aboriginal today. I volition present crook the telephone implicit to Thomas Majewski, Chief Executive Officer of Eagle Point Credit Company Inc.

Thomas Majewski: Thanks, Darren, and bully greeting to everyone. We admit your joining the telephone today. We decided to clasp our telephone earlier than accustomed this 4th to supply shareholders with a timely update connected our 4th fourth results and caller enactment astatine the company. Our yearly study volition beryllium filed aboriginal this month. During 2025, CLO equity faced hard marketplace conditions, and the institution was not immune to these market-wide conditions. While defaults stay beneath semipermanent averages, some dispersed compression successful the indebtedness marketplace and a wide antagonistic sentiment towards credit, which we judge is overdone, weighed connected some our fiscal show and the full instrumentality for our shareholders past year.

Our disciplined absorption connected portfolio absorption and semipermanent worth instauration done CLO resets and refinancings helped mitigate immoderate of the headwinds that CLO equity faced. In addition, passim the year, we leveraged our adviser’s broader origination capabilities and opportunistically accrued the company’s vulnerability to recognition assets beyond CLO equity. The beardown request for loans was fueled successful portion by captive CLO equity funds, which are often return-insensitive buyers of caller CLOs. We judge these funds besides led to indebtedness spreads compressing faster than CLO liabilities tightened arsenic their CLO issuances created much CLO indebtedness proviso than the marketplace mightiness person different had appetite for. This importantly reduced the CLO equity during the year.