Main Thesis
The purpose of this article is to evaluate the PIMCO Corporate & Income Opportunity Fund (PTY) as an investment option at its current market price. PTY is a fund I regularly review and often recommend, although in the short-term its premium price has made me cautious. This time around, the storyline is quite similar. I see bullish momentum within PTY's core holdings, specifically in the non-agency MBS category. Furthermore, recent income production metrics are resoundingly positive. However, PTY is trading at a very high premium to NAV, which makes me hesitant