Eagle Point Credit Cuts Dividend 57%, Payout Still Over 100%

Eagle Point Credit (ECC) cut its monthly distribution from $0.14 to $0.06 in February 2026, a 57% reduction, following a 31.8% NAV collapse in 2025 to $5.70 per share. Despite the cut, the fund's distribution ratio remains at 178.7%, indicating it distributes more cash than it earns. Elevated market volatility and deteriorating credit conditions in leveraged loan markets suggest further cuts are possible. ECC's structural exposure to unrated CLO equity is unsustainable at current credit cycle conditions.