A few days ago, we discussed our leverage estimates of how three PIMCO RMBS CEFs managed through the March drawdown period. In this article, we turn our attention to another popular PIMCO trio - the national municipal funds:
- Municipal Income Fund (PMF)
- Municipal Income Fund II (PML)
- Municipal Income Fund III (PMX)
All three funds appear to have cut their outstanding leverage by 16-18% with all the cuts coming from tender option bond positions. This should pressure earnings somewhat due to the drop in total assets. However, it will be partially offset by a drop