ECC Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: ECC's stable distribution amid market volatility can attract yield-seeking investors, enhancing upside potential.




Bearish Case: ECC's price is weighed by economic challenges affecting CLO distributions, as indicated by the negative trend in historical returns.




Potential Outcomes:

1. Stable returns (50%): Continued investor interest in yield (Helium).

2. Return growth (30%): CLO investments outperform.

3. Declines (20%): Macro challenges increase impacts Helium.




Trading Oracle: Implement a bearish credit put spread, expiring in 3 months. Target slightly below current price to profit from potential declines or stability. Leverage low volatility environment for favorable risk/reward.



January 17, 2025


Eagle Point Credit Forecast

ECC        Eagle Point Credit











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Assets that tend to move strongly with ECC



NEP Forecast + Options Trading Strategies   NEP  NextEra Energy (0.91)


ASML Forecast + Options Trading Strategies   ASML  New York Shares (0.85)


DVN Forecast + Options Trading Strategies   DVN  Devon Energy (0.85)


BYND Forecast + Options Trading Strategies   BYND  Beyond Meat (0.84)


CNI Forecast + Options Trading Strategies   CNI  Canadian National Railway (0.84)



Uncorrelated Assets

Assets with little price relationship to ECC



DOMO Forecast + Options Trading Strategies   DOMO  Domo (-0.0)


FREY Forecast + Options Trading Strategies   FREY  FREYR Battery (-0.01)


SU Forecast + Options Trading Strategies   SU  Suncor Energy (-0.01)


UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (-0.01)


ACGL Forecast + Options Trading Strategies   ACGL  Arch (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against ECC



TPG Forecast + Options Trading Strategies   TPG  TPG (-0.84)


TVTX Forecast + Options Trading Strategies   TVTX  Travere Therapeutics (-0.84)


ADP Forecast + Options Trading Strategies   ADP  Automatic Data Processing (-0.84)


CBRE Forecast + Options Trading Strategies   CBRE  CBRE (-0.85)


NOW Forecast + Options Trading Strategies   NOW  ServiceNow (-0.86)









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