Aug 13, 2026 earnings call — NAV rebound and CLO portfolio repositioning
Net asset value rose to $4.51 per share, an 8% increase from March 31.
Revenue $0.0B (est $0.0B) · EPS $0.17 (est $0.18)
Key quotes
"The recovery at NAV was driven by a meaningful rebound in loan prices and CLO equity valuations following the volatility we experienced in the first quarter."
"Throughout the quarter, we continue to actively manage our CLO portfolio by completing 8 resets and 7 refinancings of our CLO equity position."
"As of June 30, non CLO investments represented 38% of our portfolio which was up from 32% at March 31."
Analyst Q&A 3
Loan spreads and non-CLO yield
Q (Gaurav Mehta · Alliance Global Partners): Analyst asked what drove the loan spread compression easing and whether that improvement will last. He also asked the yield on the new non-CLO investments and whether there is a target for that exposure.
A: Management said loan spread compression lagged through CLOs and is now roughly flat quarter over quarter, with some loans even widening. They said new non-CLO and CLO equity investments have expected yields in the "very low twenties," and there is no fixed target for the non-CLO share—the priority is finding strong returns.
"The spread on the underlying loan portfolio is roughly flat quarter over quarter." — Thomas Philip Majewski (CEO)
Capital deployed and infrastructure investments
Q (Timothy D'Agostino · B. Riley): Analyst asked about gross capital deployed this quarter and whether market conditions or available capital drove that. He also asked for more detail on the growing infrastructure credit sleeve and what types of infrastructure are included.
A: Management said deployment was driven by a mix of market opportunity and a goal to stay close to fully invested, and that selling over $100 million of CLO equity in the quarter freed capital to reinvest across CLOs and other investments. For infrastructure credit, they said it is a broad basket (digital infrastructure, battery components, recycling, hydroelectric, electric generation and storage) and that the team is experienced and has originated some of the firm's best investments.
"As I look across the complex, of the $71 million invested during it looks like about $44 million went into CLOs and related investments." — Thomas Philip Majewski (CEO)
Manager underperformance and leverage plan
Q (Eric Zwick · Lucid): Analyst asked what metrics defined underperforming managers and how ECC decides to exit them. He also asked for a timeframe and the plan to return leverage to the target range.
A: Management said underperformance shows up as buying poor credits, ‘‘par burn’’ from selling at lower par, and rapid market-value declines, and they now use qualitative and quantitative diligence to spot problems earlier. On leverage, management said there is no set deadline; they expect a mix of NAV improvement, crystallizing gains from certain investments, and opportunistic buybacks of discounted preferreds to move leverage back toward the target over time.
"And when we pull the trigger on that and the diligence we do, looking for both qualitative measures but also quantitative measures to help with both of those." — Thomas Philip Majewski (CEO)