Eagle Point Income Company Inc. (EIC) has consistently underperformed, delivering sub-3% annual total returns with high volatility versus lower-risk alternatives. EIC's structural issues—high expense ratio (6% annualized) and leveraged exposure—erode returns, making it unlikely to achieve double-digit yields sustainably. Current discount to NAV and depressed CLO equity valuations could enable a short-term rebound, but long-term returns remain capped by asset class limitations.
EIC: 1% Total Return Vs 13% Yield, Why These CLO Funds Struggle
Source: Seeking Alpha