- RCS is a relatively idiosyncratic fund in the PIMCO taxable suite, with an overweight in agencies.
- We take a look at some of the fund's features and try to figure out some of its more puzzling attributes.
- These puzzles are how much leverage does the fund carry in its agency allocation, whether it can support its current distribution and why it decided to sharply cut its leverage.
- Unfortunately, we don't have fully satisfying answers to these questions but would watch the fund's leverage for investors anticipating distribution changes.
For further details see:
RCS: A Look At This Higher-Quality Allocation PIMCO CEF