PHK News and Press, Pimco High Income Fund From 02/11/21

The taxable PIMCO CEFs are still trading below 100% coverage thanks to the falling dollar. That could improve in January as the dollar has rebounded some. In this space, we continue to like RCS and PHK. PGP is a good S&P 500 proxy. Muni CEF coverage continues to get healthier....

The COVID-19 pandemic has created a lot of uncertainties surrounding the fair market valuation of level 3 type of assets. BIT has announced that it will allocate 65% of the monthly distribution in January 2021 as a return of capital. The worsening of the global pandemic with the n...

December was another good month for CEFs with some discount tightening and NAV growth. The Core Portfolio was up over 1% with the NAV up 1.8%. The January Effect could bring discounts to an expensive level if the recent trends continue. At that point we would want to start reducing CE...

Coverage ratios were fairly flat month-over-month but UNII values fell a bit. I'm not concerned about the distribution being cut on the taxable funds. NAV performance has been stellar across the entirety of the funds but primarily in the higher-risk funds like PHK and RCS. Those t...

The average PIMCO taxable leverage level has fallen for the second month in a row, a rational response to credit valuations that are nearly fully priced. PIMCO CEF discount levels have recovered significantly. If we exclude funds that have cut distributions, the average premium is qui...

The higher-risk funds from PIMCO - PGP, PHK, and RCS - have been untouchable for some time due to their high premiums. What exactly is PGP anyway?  It's a unique strategy that has been around a long time from PIMCO but seldom highlighted. We like the shares as an equity-incom...

For the first month in three, equity CEFs on average posted positive returns, rising 9.86% on a NAV basis for November. While for the eighth month in a row, fixed income CEFs witnessed returns in the black (+3.51%). Sixteen percent of all CEFs traded at a premium to their NAV, wit...

We respond to Barry Ritholtz's article on boosting yield in a low-yield investment environment. Our view is that there are better ways to maintain quality, shorten up duration and increase yield than what Barry suggests. We also highlight a number of options we continue to like an...

For income investors, closed-end funds are an attractive investment class that covers a variety of asset classes and promises high distributions and a reasonable total return. The market downturn earlier this year exposed the risk of high volatility and deep drawdowns with investing i...

We review October leverage figures for the PIMCO taxable suite. We find that fund borrowings decreased slightly, possibly due to already high leverage levels and tightening underlying asset valuations. We also look at the recent outperformance of funds with greater yield curve ste...