- Right now is one of the best times to get into what is typically thought of as the best-in-breed of the CEF world.
- Most of the funds are trading cheap thanks to the cut to three of the funds back in September. Investors are extrapolating those cuts to the rest of the taxables.
- But come January 3, I do think a lot of the risk overhang will be gone. For one, we could see the distribution cut we've been waiting for.
- Right now, I do think PDI is baking in the high potential for a distribution cut. The merger is likely putting that on hold and we could see it January 3.
- We like PDO, PFN, and PDI here the best.
For further details see:
PIMCO CEFs Update: The Merger Is Nearly Complete As Buying Opportunities Are All Around