PHK - PDO: Updating Our View And PIMCO CEF March Update

• We take a look at PIMCO CEF leverage and coverage numbers from March.
• PDO has finally leveraged up to a middle-of-the-pack level in the taxable suite and looks attractive from a valuation perspective, though not as much as its low premium suggests.
• Coverage remains high in the tax-exempt suite and relatively stable in the taxable suite as the August 2020 earn-ageddon is behind us.
• Overall, PIMCO taxable premiums have reached very elevated levels, particularly when we take into account the distribution cuts of 2020.

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