PCN - PCN: After Some Thought I'm Still Not A Buyer
- Credit plays have been punished in 2022 so far. This could open up some buying opportunities, especially for those with a more long-term view.
- PCN is notorious for trading at a high premium to NAV. At the present moment, the 10% premium level seems reasonable.
- Yet, I would caution away from this line of thinking. A 10% premium is not "cheap", and there is no guarantee the fund will return to its former valuations.
- Inflation continues to pressure fixed income. Yet, there are signs that it could start easing over the course of the year. Also, high yield credit has less duration risk than IG credit, so that is a positive.
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PCN: After Some Thought, I'm Still Not A Buyer