- Investors in need of income from their portfolios have been having a very difficult time in recent years due to the policies of the Federal Reserve and other central banks.
- PDI manages to solve this problem by boasting a 9.9% yield off of a fixed-income portfolio.
- The fund uses quite a bit of leverage to achieve this yield, but given that it has a lot of relatively safe assets, this is probably OK.
- It's questionable whether or not the distribution is actually sustainable and the price is extremely high relative to the fund's assets.
- Bond funds will get obliterated when interest rates rise but I doubt that will be anytime soon.
For further details see:
PDI: Extremely High Yield From This PIMCO Fund But Price Is A Bit High