PMF - PIMCO Gives Investors Another Scare
- It seems that again the UNII report was affected by the fall in the US dollar which further reduced coverage ratios.
- So far in September, the dollar is up moderately, indicating that a rebound in coverage ratios is highly probable.
- PIMCO muni CEFs are for the first time in a long time healthy fundamentally. Just be careful with PCQ and PML.
- The NAVs and True Coverage Ratio ("TCR") are a better indicator of the health of these funds as they tend to dampen the volatility of their derivative book.
- We like PDI and RCS best given their cheap valuations.
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PIMCO Gives Investors Another Scare