PTY - PTY: 30% NAV Premium And Rising Corporate Yields Create Significant Downside Risk

• Record low-interest rates are pushing many investors into riskier leveraged high-yield credit funds like PTY.
• PIMCO's PTY has become riskier over the past two years, with a higher beta and volatility than most equity funds.
• PTY's net asset value declined recently as junk bond yields switched toward a rising trend.
• The end to monetary stimulus, falling consumer confidence, and rising inflation will likely push junk bond yields materially higher.
• At a massive 30% NAV premium, combined with other negative factors, PTY is at high immediate risk of a significant decline in value.

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