PHK - PHK: Defying Gravity
Main Thesis
The purpose of this article is to articulate why I believe the Pimco High Income Fund (NYSE:PHK) is not an attractive investment option at its current market price. PHK's premium continues to rise and it is now the most expensive Pimco CEF based on this metric, which is not a glamorous title. The fund's NAV continues to face short-term pressure, likely due to interest rate increases, which would suggest future pain may be on the way.
Furthermore, PHK's negative undistributed net investment income ((UNII)) continues to decline on a short-term basis,