Main Thesis
The purpose of this article is to evaluate the PCM Fund, Inc. (PCM) as an investment option at its current market price. Earlier this year, I reiterated caution on PCM due to the fund's rising premium. Looking back, PCM, along with many PIMCO CEFs, have continued to trade at lofty valuations as investors pay up for above-average yields. In the short-term, PCM has seen positive gains, and continues to deliver income in the 8%-9% range. Furthermore, the fund has undergone a portfolio change, shifting predominately in to the non-agency MBS sector,