MINT: A Hold In An Updated Rate Regime

2025-12-19 21:38:01 ET

Intro & Thesis

In my last coverage of the PIMCO Enhanced Short Maturity Active ETF ( MINT ), I commented that the main driver of the ETF's returns was the carry it provided and that, with its ultra-short duration, it maximized that carry given the interest rate levels in July. That framework remains valid, but with one update: since the last analysis, there have been two consecutive cuts in official interest rates, from 4% in October to 3.50% currently. As we will see below, this has a direct impact on a cash plus fund (ultra-short duration), which lives permanently off carry....

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