PIMCO March 2025 Update | PDI Gets Rich, PAXS/PFN/PHK Cheaper

2025-03-22 10:00:00 ET

Summary

• I recommend trimming PDI positions and rotating into cheaper PIMCO funds like PAXS, PFN, and PHK for better value and potential gains.
• PDI has shown strong performance, rising 5% plus distributions for a 7.8% total return in less than four months.
• PIMCO funds' leverage has significantly decreased, indicating a risk-off strategy, making them more stable but potentially less aggressive.
• Despite recent gains, PIMCO taxable CEFs are overvalued; selling now and rotating into undervalued options could enhance long-term returns.

Over the last few months, I've been on the PIMCO bandwagon. This was especially the case a few months ago when PIMCO Dynamic Income ( PDI ) saw its premium erode down to 7%.

In our December 12th Daily Note, we advocated taking profits out of PDX and moving them into PDI. At the time, the price of PDX was $26.65 and PDI was $19.02....

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