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Non-Tech : Income Investing

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To: FL_Guy who wrote (52069)	11/13/2025 12:58:06 PM
From: Elroy	Read Replies (2) of 52113

EICB is supposed to be a "safe pick"? I just breezed their last Q release. Here's their business description - The Company is a diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital gains. The Company seeks to achieve its investment objectives by investing primarily in junior debt tranches of CLOs. In addition, the Company may invest up to 35% of its total assets (at the time of investment) in CLO equity securities. So this company is investing in junk debt (diversified pool of junk debt, but they're investing in junk) and only paying you about 7.5%? How is this safer or better than NGL preferreds, which pay more than 11.4%, to you? NGL's common stock has moved from $3 in the tariff tantrum to about $10 today, because their business (water transport for energy companies) is allegedly improving. Why is it "safer" to make 7.5% on a pool of junk debt rather than 11.4% on an improving business?

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