Eagle Point's Fortunes Rise on CLO Convexity Gains Eagle Point Income Company Inc. 's latest earnings call indicates that the firm is benefiting from convexity gains in collateralized loan obligations (CLOs).
The company's net asset value (NAV) rose 4% to $12. 52 per share, driven by a meaningful recovery in loan prices and CLO valuations.
Eagle Point's management attributes early year market pressure to concerns surrounding AI's impact on software borrowers and geopolitical developments, rather than a broad deterioration in credit fundamentals.