{"data":{"id":"sw_8b8da618aaa3985622ed","slug":"eagle-point-credit-s-clo-preferred-yields-9-45-at-steep-discount-as-palmer-squar","title":"Eagle Point Credit's CLO Preferred Yields 9.45% at Steep Discount as Palmer Square Deal Stirs CLO Market","subheadline":"Eagle Point Credit's Series D preferred trades near a 28.6% discount to par just as Goldman's reported bid for Palmer Square puts fresh attention on the CLO sector.","summary":"Eagle Point Credit's 6.75% Series D preferred yields 9.45% while trading roughly 28.6% below its $25 par value, a gap drawing notice as Goldman Sachs reportedly bids for CLO manager Palmer Square.","body":"Eagle Point Credit Company's Series D preferred stock, traded under the symbol ECC'D, closed at $17.88 on September 28, 2026, putting the security roughly 28.6 percent below its $25 liquidation preference. At that price the 6.75 percent cumulative perpetual preferred carries a current yield of 9.45 percent, a gap between coupon and market price that first stood out in data tracked on Preferred Stock AI, a Madison Labs research site.\n\nThe discount means investors buying ECC'D today at market price are paying about $7.15 less per share than the $25 they would be entitled to receive if the security were redeemed at par, a difference the underlying data describes as roughly 40 percent capital appreciation potential should the shares trade back to liquidation value. The preferred is callable starting November 29, 2026, giving Eagle Point Credit the option, but not the obligation, to redeem the shares at par from that date forward. Until then the security continues to pay a monthly cumulative dividend of $0.140625 per share, with the most recent ex-dividend date recorded as September 10, 2026.\n\nWhy the pricing gap matters to income-focused investors comes down to the mechanics of closed-end fund preferreds tied to collateralized loan obligations. Eagle Point Credit Company, which trades on the NYSE under the common ticker ECC, is an externally managed closed-end fund that invests primarily in equity and junior debt tranches of CLOs backed by pools of below-investment-grade senior secured loans. That structure means the fund's income and net asset value are sensitive to credit conditions across a broad swath of leveraged loan borrowers, and its preferred stock, sitting above the common in the capital structure but still exposed to the fund's overall credit performance, tends to trade with a wider discount to par than the average preferred security. Among a group of 36 preferred issues carrying a current yield in the same dataset, the average discount to par was 19.2 percent, meaning ECC'D's spread is notably wider than that peer set.\n\nThe background here is that Eagle Point Credit issued the Series D preferred in November 2021 with 1,000,000 shares offered at the standard $25 liquidation preference, and the security has remained cumulative, meaning any missed dividend must eventually be paid before common shareholders receive distributions. Eagle Point's common shares closed at $3.52 on the same day, down 1.14 percent, and sit well below their 52-week high of $7.07, reflecting broader pressure on the common equity even as the preferred's yield has stayed elevated.\n\nThe renewed attention to CLO-linked securities arrives as Wall Street's appetite for CLO exposure appears to be growing rather than shrinking. Goldman Sachs is reportedly leading bidding for Palmer Square, a $37 billion CLO manager, according to a report from Yahoo Finance, a deal that if completed would represent one of the larger consolidation moves in the CLO management business in recent memory. Separately, BMO has pointed to loan demand rising alongside returns as the market moves toward targets set for 2027, per Yahoo Finance, a dynamic that touches the same leveraged loan pools that underpin CLO equity and debt tranches held by funds like Eagle Point Credit. Neither Goldman Sachs nor BMO has commented specifically on Eagle Point Credit or its preferred securities, and the interest in Palmer Square reflects a transaction involving a separate CLO manager rather than Eagle Point itself.\n\nBroader markets on the day showed mixed signals across asset classes, with bitcoin trading near $83,982 and up 1.3 percent over 24 hours, while several large technology and industrial names including Qualcomm, Boeing and Intel posted notable single day declines. None of that activity bears directly on Eagle Point Credit's preferred shares, but it underscores a market environment in which credit sensitive income securities are being weighed against volatility elsewhere in equities and digital assets.\n\nInvestors and analysts tracking Eagle Point Credit are likely to watch several developments in the months ahead: whether the company exercises its call option on the Series D preferred once the November 2026 call date arrives, how the broader CLO market absorbs consolidation activity like the reported Goldman Sachs interest in Palmer Square, and whether loan market conditions described by BMO translate into changes in CLO equity distributions that flow through to Eagle Point Credit's own dividend policy. None of these outcomes is guaranteed, and any decision by the company regarding redemption or dividend levels would be disclosed through its own filings and public statements.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"News","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":83,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/ECC-P-D","featured_image":null,"published_at":"2026-09-29T11:26:10.140307+00:00","updated_at":"2026-09-29T11:26:10.140307+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}