PTY - PTY: A Victim Of Its Own Past Success

December, 16 2021 08:40 PM Pimco Corporate & Income Opportunity Fund

PTY has seen a double-digit drop over the past three months. The decline was predictable, but the speed at which it occurred has taken some by surprise.
With this drop, PTY is now trading at a much more reasonable valuation, limiting the downside risk going forward. However, it is still above my premium to NAV threshold.
High yield credit has performed well in 2021, and there are signs that could continue in 2022 as the economic recovery continues. This bodes well for PTY's underlying holdings.
With a recent income cut, the fund is now covering its distribution, which is a positive sign.

For further details see:

Company Name:	Pimco Corporate & Income Opportunity Fund
Stock Symbol:	PTY
Market:	NYSE