PCI - PCM: Seeing Some Weakness
Main Thesis
The purpose of this article is to assess the PCM Fund, Inc. (NYSE:PCM) as an investment option at its current market price. The fund is trading at a modest premium to net asset value ((NAV)), with the premium at about half the level it was when Q4 began last year. However, the fund's income production has declined, and NAV performance in the short-term has been disappointing. Furthermore, while delinquencies in the mortgage market remain low, home equity loans saw a slight uptick in defaults. While the rate is still below pre-recession