- With difficult economic conditions likely to linger, buying in to leveraged high-yield CEFs is not for the risk-averse. However, for those who can withstand some volatility, PKO is a reasonable option.
- The fund does sport a premium price, but it is at a modest level historically. Further, it is lower than other CEFs from PIMCO that have similar holdings.
- Income metrics are weak, and a distribution cut is a risk. Yet, there are signs of stability in the high yield sector, and PKO's yield will remain competitive even with a cut.
For further details see:
PKO Offers A Better Value Than Its Direct Peers From PIMCO