PDI - PCI And PDI: PIMCO Coverage Ratios And UNII Sink In October But No Cause For Alarm

Please note that the following article was published to members of Yield Hunting on November 18^th.

Executive Summary:

• The drop in the coverage ratios was primarily due to the depreciation of the USD against the euro and the pound.
• Longer term, these currency movements tend to cancel out and have a more neutral impact on net investment income.
• Interest rates also moved against them in the third quarter but with them in October.
• Both currency and interest rate hedges are there to mitigate risk rather than as bets looking for performance gains.
• The

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