PML - PML: Why I Bought This Fund And Some Risks To The Bull Thesis

January, 08 2023 08:47 PM Pimco Municipal Income Fund II of Beneficial Interest

Summary

PIMCO disappointed investors with large distribution cuts to start the year across their muni CEFs. This resulted in painful losses - but also presents buying opportunities.
PML often has a large premium to NAV - today, it sits at par value. This suggests the fund is worth a look.
While the income cut was large, the yield remains very attractive. The market expects the Fed to reduce rates by 2024, so buying bonds now can make sense.
PML is not without risk. The Fed is currently on a hiking path, so that headwind is not over. Further, the Illinois exposure is not something I am too keen on.

For further details see:

Company Name:	Pimco Municipal Income Fund II of Beneficial Interest
Stock Symbol:	PML
Market:	NYSE