PIMCO released their June report on their fund complex. The data shows a continuation of recent trends including weakness in their muni funds, which continue to erode UNII and will eventually need a cut, as well as strength in their taxable funds.
Recall that PIMCO Dynamic Credit and Mortgage (PCI) recently increased their distribution by 6% and effectively rules out a distribution cut for the near term. The funds have produced sizable YTD gains as detailed below.
We recently wrote on PCI in our article titled,"PCI Increases Distribution, Decimated Cut Argument."