PAXS - PIMCO Update Feb 2024 | PDX Makes The Move Valuations Remain Rich
2024-03-21 07:00:00 ET
Summary
- Funds rely on at-the-market offerings and capital gains to make up for earnings shortfalls and maintain distributions.
- Coverage levels for taxable funds declined in January due to the falling value of the dollar.
- Net investment income production has been declining for several years, leading to potential distribution cuts and overvalued NAVs.
In this report, I will spend more time on the semi-annual reports and valuations more than anything else. In summation, the funds have a lot of moving parts with some relying on the at the market offering to issue new shares and bring in new capital in order to make up the shortfall between earnings and the distributions. Others have to rely on capital gains....
PIMCO Update Feb 2024 | PDX Makes The Move, Valuations Remain Rich