PAI - PAI: Conservative Way To Play Future Rate Cuts
2024-07-02 14:24:32 ET
Summary
- Western Asset Inv Grade Income Fund Inc has been moving mostly sideways since our last update but continues to offer an attractive discount.
- The PAI closed-end fund is relatively conservative thanks to being a non-leveraged fund and investing primarily in investment-grade bonds.
- Potential upside opportunities could come from discount narrowing or rate cuts, though rate cut expectations have been being pushed back further and further.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Since our last look at the Western Asset Inv Grade Income Fund Inc ( PAI ), it has been moving mostly sideways. Our last update was just after the fund had slid lower with the broader market correction in the fall of 2023. At that time, risk-free rates were starting to surge to decade highs, and that pressured fixed-income funds like PAI, with its investment-grade tilted portfolio....
PAI: Conservative Way To Play Future Rate Cuts