PDI - PDI: Favorable Environment For 14% Yielder
2024-06-30 20:00:20 ET
Summary
- PIMCO Dynamic Income Fund offers high monthly income through global debt investments, including mortgage-backed securities and high-yield corporates.
- Despite consistent dividend payouts, PDI is a volatile investment, with a NAV decline of nearly 32% in the last 3 years.
- PDI's performance is heavily influenced by Fed rate changes, with potential benefits from upcoming rate cuts and opportunities to buy on weakness.
PIMCO Dynamic Income Fund ( PDI ) is a closed-end mutual fund or CEF that provides investors with a high level of monthly income. The CEF trades very volatile due to the risky debt investments in the fund and the impact on NAV from rate changes by the Fed. My investment thesis is Bullish on PDI due to overstated risks inherent in the massive dividend yield and the likely benefit from upcoming Fed rate cuts....
PDI: Favorable Environment For 14% Yielder