PIMCO High Income Fund vs Eagle Point Credit

PIMCO High Income Fund and Eagle Point Credit Co Inc are presented to compare their business models, financial performance, and market context. This page provides an objective overview of income generation, risk management, and portfolio positioning, highlighting similarities and differences in approach. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

PHK

Metric

ECC

$854.53M

Market Cap

$743.13M

N/A

Potential Profit

27.01%

N/A

Analyst Rating

Buy

Investment Analysis

PIMCO High Income Fund

PHK

Pros

Offers a double-digit annual dividend yield above 11%, appealing to investors seeking high current income
Global fixed income diversification, including a significant allocation to US high-yield corporates and international exposures
Demonstrates relatively low share price volatility compared to equity-focused high-yield products, with a beta below 0.7

Considerations

Closed-end structure can lead to periods where the fund trades at a persistent discount to net asset value
Dividend support increasingly relies on return of capital components, not organic earnings, which could pressure sustainability
Portfolio concentrated in below-investment-grade credit, raising issuer and sector risks amid rising credit cycle pressures

Eagle Point Credit

ECC

Pros

Focuses on directly originating, underwriting, and distributing CLO equity, offering unique exposure to leveraged loan securitisation structures
Portfolio tilt towards senior-secured floating-rate loans provides a degree of interest rate protection if benchmark rates rise
Payout yields often rank among the highest in the credit sector, driven by CLO equity’s excess spreads and capital gains

Considerations

Deeply cyclical credit risk profile, as CLO equity is among the most volatile and economically sensitive securitisation asset classes
Elevated leverage within both the CLO holdings and fund-level balance sheet amplifies downside risks
Distributions can be highly variable and unpredictable, as they depend on complex waterfall triggers and collateral performance across multiple CLO deals

About The Companies

PIMCO High Income Fund (PHK)

The PIMCO High Income Fund (PHK) is a type of investment known as a closed-end fund. Its primary objective is to generate a high level of current income for its investors, with capital appreciation being a secondary goal. To achieve this, the fund employs a dynamic strategy, allocating its assets across a diverse range of fixed-income sectors in the global credit markets. Its portfolio can include corporate debt (like bonds and bank loans), mortgage-related securities, government and sovereign debt, and even debt from emerging markets. Managed by Pacific Investment Management Company LLC (PIMCO), one of the world's leading investment managers, the fund's strategy is guided by forecasts on interest rates, economic outlooks, and credit characteristics. As with any investment, the value of the fund can go down as well as up, and past performance is not a guide to future returns.

Eagle Point Credit (ECC)

Eagle Point Credit Company Inc. is a specialised investment firm that operates as a non-diversified, closed-end management investment company. Its primary objective is to generate high current income for investors, with a secondary goal of achieving capital appreciation. The company achieves this by investing mainly in the equity and junior debt tranches of Collateralised Loan Obligations (CLOs). These CLOs are complex financial instruments backed by a diverse portfolio of below-investment-grade senior secured loans from U.S. companies across various sectors, including technology, healthcare, and financial services. By focusing on these specific slices of CLOs, Eagle Point aims to capture potentially higher yields, though this strategy also involves specific risks associated with the underlying loans. This approach may be of interest to investors looking for income-focused opportunities, with an understanding that the value of such investments can fluctuate.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

PIMCO High Income Fund vs Eagle Point Credit

Comparison Snapshot

Investment Analysis

PIMCO High Income Fund

Pros

Considerations

Eagle Point Credit

Pros

Considerations

About The Companies

Buy PHK or ECC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

PIMCO High Income Fund vs Eagle Point Credit

Comparison Snapshot

Investment Analysis

PIMCO High Income Fund

Pros

Considerations

Eagle Point Credit

Pros

Considerations

About The Companies

Buy PHK or ECC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

PIMCO High Income Fund vs LexinFintech

PIMCO High Income Fund vs Atlanticus

PIMCO High Income Fund vs Amalgamated Financial

Frequently asked questions

What is the fundamental difference between a closed-end fund like PIMCO High Income Fund and a typical open-ended fund?

What role does portfolio concentration play in the risk profile of stock_1?

How does stock_2 derive its yields, and what does that imply for income stability?

What makes stock_1's dividend yield attractive, and what should beginners watch for?

How does the risk profile of stock_2 compare to stock_1 in terms of market sensitivity?

What impact do broader credit cycles have on both Stock A and Stock B?

How does leverage influence the potential returns and risks for stock_2?

What should a beginner monitor when comparing the income profiles of stock_1 and stock_2?

How should one interpret price versus NAV in a closed-end fund like stock_1?

Why is ‘distributions’ terminology important when evaluating these funds?

What educational takeaway should a reader have about income-focused investments from this comparison?

Educational disclaimer for readers of this page.

Comparison Snapshot

About The Companies