The Eagle Point Income Company (EIC) is an unusual CEF that allocates to junior mezz CLO tranches. It is also one of the few CEFs that doesn’t provide daily NAVs.
This means that for us to have a view on the fund’s discount we need to extrapolate its NAV based on instruments that are available daily which is what we do.
What is interesting is that we have seen quite a sharp rally over the last couple of weeks since the last EIC NAV update, however the fund’s price has not responded. This suggests that the fund’s discount has crept up to a 12-15% level – an attractive figure historically by our estimate.
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