PFN - PIMCO Update February 2022 - PDO Moves Into Strong Buy Territory (Back Up The Truck!)

• Coverage ratios and UNII levels for most of the taxable PIMCO funds look very compelling here.
• NAVs remain weak and leverage is in the middle of their range for the last several years.
• If NAVs can stabilize, we think the current valuations are extremely attractive and could be bought.
• PDI at a 2.5% premium is cheap but PDO at a -7.5% discount is extremely attractive as it removes distribution cut risk.
• PTY and PFN/PFL could also be bought here. We would still be cautious on PCM and RCS.

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