CEF Holdings ---- April 2026

[DrVenture]

IMO yes, the highest yielding ones. Perhaps I misunderstand what you are trying to get at, but if the after tax percentage is what you keep, obviously (say) 78% of $10,000 is better than 78% of $7,000.
Regards, Dick

I may not even understand what I am getting at. It falls under the adage that "one does not know what they do not know".

I think that @COcheesehead hit on my thinking, such that ROC is not taxable. But, I am not entirely sure what other factors might come into play.

I think that I will be building more assets in taxable, as I draw from tax-deferred, and do not need all of the income. My choices seems to be equities, cash or maybe CEFs. I will likely employ all of these.

I totally agree with your thinking that generally the more income one earns, the better, regardless of the taxes. This is something that I have always embraced, and why I have never quite understood accepting much lower income, just to save on taxes. Particularly, in the "lower" tax brackets.

Obviously, there are other considerations, such as IRMAA, then NIIT, should one's MAGI rise to that level. I am just getting ready to start retirement, so this is still a work in progress.

As usual, I welcome constructive dialogue, even dissenting. I also think that there are others to whom this all may apply.

 

[DrVenture]

This is very helpful!

Holding muni CEFs in a taxable account, for income purposes, as opposed to bondish CEFs, seems like a missed opportunity to get more income

This doesn't mean munis, as an asset class, can't play a role in your portfolio. It depends on everyone's portfolio size and construction and taxable/non-taxable (IRA) allocation.

In my case, I hold a (relatively high) allocation to individual munis, AAA-AA, in my taxable accounts. They yield 4% on average and are pulled to par on expiration/call dates.

These muni bonds act as volatility stabilizer for my portfolio, as cash equivalent when opportunities in risk assets show up and lower my tax bracket.

This is an example of what I am exploring with my inquiries. I never considered holding CEFs in taxable before, but that seems like an important consideration.

Ultimately, I am looking to "know what I do not (currently) know".

 

[IncomeOriented]

Are there any specific Pimco CEFs that are better suited for a taxable account? We also pay state tax on munis where we live.

I’m hesitant to recommend specific funds. However my current holdings I’ve shared here regularly and can easily be looked up.

Some things I look for in tax reduction for me. High rates of ROC, and that is minimally destructive over time. Qualified dividends also will reduce my taxes.

Another issue is to keep my AGI under $250k to keep from triggering the investment tax and extra Medicare premiums. I am currently using alternative investments that offer good returns and low taxable income. I recently moved 5% of my taxable accounts into alternatives. In the past I had used preferred CEFs and option income CEFs to reduce taxable income.
EDIT! everyone’s tax situation is different. This is not tax advice. Consult your tax advisor.

 

[surprising]

This is an example of what I am exploring with my inquiries. I never considered holding CEFs in taxable before, but that seems like an important consideration.

Ultimately, I am looking to "know what I do not (currently) know".

I wouldn't hold CEFs in taxable if you don't need the income and are just DRIPping the distribution. You are getting forced taxable income. It could mess with your MAGI if you're trying to stay below FPL for ACA subsidies. It could put you in higher tax bracket.

 

[DrVenture]

I’m hesitant to recommend specific funds. However my current holdings I’ve shared here regularly and can easily be looked up.

Some things I look for in tax reduction for me. High rates of ROC, and that is minimally destructive over time. Qualified dividends also will reduce my taxes.

Another issue is to keep my AGI under $250k to keep from triggering the investment tax and extra Medicare premiums. I am currently using alternative investments that offer good returns and low taxable income. I recently moved 5% of my taxable accounts into alternatives. In the past I had used preferred CEFs and option income CEFs to reduce taxable income.
EDIT! everyone’s tax situation is different. This is not tax advice. Consult your tax advisor.

Understood, I will do that. For the record, I take full responsibility for the due diligence on investment choices. I don't think of such things as "recommendations", as much as potential ideas for me to explore.

Agree that being mindful of IRMAA and NIIT is a great idea.

 

[DrVenture]

Changing the subject, based on this weekend's geopolitical and macro events, I would expect some CEF buying opportunities this coming week.

Anyone else thinking the same?

 

[d.davis]

The market futures could confirm that thought this evening.

 

[marko]

The market futures could confirm that thought this evening.

As they say: "There's always a buying opportunity out there somewhere!!"

 

[marget]

Specific times:
PDI
10/23----low= 15.45 down 20.9%
4/25------low= 16.00 down 20.3%
3/26------low= 16.50 down 13%

When I divided the lows from these dates by the present high from 3/26(19) & minus a 1 to get the % down, then an interesting % pops up.

10/23 low divided by 3/26 high= 18.6% down. It seems to me that $15.45 could easily come into play.

4/25 low divided by 3/26 high= 15.7% So, that $16.00 is also even more likely to come into play first. If it doesn't hold, then the 10/23 ($15.45) will most likely be tested.

So w/ another swoon, the 16.50 low for 3/26 has to be either tested or broken.
I have these three numbers in mind:
16.50 ---> 16.00--->15.45 as marks that I need to keep in mind.

I have done this for all 4 Pimco CEFs I own. I am daring myself to post this to keep me honest w/ myself.

 

[marko]

The market futures could confirm that thought this evening.

As of 9am, futures are down "only" 490, about half of what I was expecting (and what the media breathlessly led me to believe).

Yes, it's very early, but I'm beginning to wonder if the market is starting to price-in what seems to have become short lived crises. Blink and the buying opportunity is over.

Again, it's still early. Just one man's opinion.

 

[joejetski]

As of 9am, futures are down "only" 490, about half of what I was expecting (and what the media breathlessly led me to believe).

Yes, it's very early, but I'm beginning to wonder if the market is starting to price-in what seems to have become short lived crises. Blink and the buying opportunity is over.

Again, it's still early. Just one man's opinion.

DOW down about 250, S&P and Nasdaq up a little. No buying presented itself yet. Maybe some craziness this afternoon prior to closing?

 

[Steelpony]

As of 9am, futures are down "only" 490, about half of what I was expecting (and what the media breathlessly led me to believe).

Yes, it's very early, but I'm beginning to wonder if the market is starting to price-in what seems to have become short lived crises. Blink and the buying opportunity is over.

Again, it's still early. Just one man's opinion.

I always checked the European Markets for hints of what may be ahead for the U.S. because we’re asleep when they open.

I just looked and they’re near the end or have ended for today and they're down about .15%.

My rumor mill says the Iranians are desperate now and near the end. That may be why the reaction is muted.

 

[surprising]

Back in PDO after ex-div today. Previously sold most of my CEFs early March.

 

[dickoncapecod]

DOW down about 250, S&P and Nasdaq up a little. No buying presented itself yet. Maybe some craziness this afternoon prior to closing?

CEFs? D

 

[DrVenture]

If all that is indicated in the macro is resulting in this current market reaction, then I wonder if this is as low as we are going. Kind of flabbergasted.

 

[marko]

If all that is indicated in the macro is resulting in this current market reaction, then I wonder if this is as low as we are going. Kind of flabbergasted.

VIX has remained low. Talk of market being oversold. Crises seemed to now be measured in hours or days vs months.
Getting hard to buy the dip!
But tomorrow's another day, eh?

 

[stefansm]

A few technical/macro indicators I am watching and would like to share and interpret:
These below are weekly charts. The orange line is 52 weeks (1 year) moving average.
If the chart is above the orange MA, the long term trend is up. Bellow, the trend is down.
From upper pane down:

1. Upper pane is S&P. It bounced nicely off the 52 weeks MA which acted as support => Market trend is UP.

2. Next pane is the HY Spread. It measures market/economic risk as assessed by pro bond traders => Risk is trending down, after being elevated since February this year.

3. Next pane is measuring sectors rotation between offensives (cyclicals) and defensive (staples, healthcare, utes). Trend up means rotation (cash flows) from defensive to offensive, which, as you can see, is happening now.

3. Last pane shows the continued unemployment claims trend. Trend up means the economy is losing jobs, down means the economy is gaining jobs.
How to interpret it in combination with the market trend: If continued claims is on trend up and the market trend (upper pane) is on trend down, we are going or already are in recession.
But now, the opposite is true, market trend is up AND continued claims trend is down => economy is expanding and employers are doing more hiring than firing.

All in all, these indicators point to the high probability the market (and economy) has absorbed the geo-political situation and its energy implications and is going back to a higher high. (of course, not investment advice ).

 

[Flyfish1]

Slowly reducing overall number of positions. Sold a laggard that I have had for several years, MSD . Consolidated that into NVG and IGR and...yes increased my income.

 

[dickoncapecod]

A few technical/macro indicators I am watching and would like to share and interpret:
These below are weekly charts. The orange line is 52 weeks (1 year) moving average.
If the chart is above the orange MA, the long term trend is up. Bellow, the trend is down.
From upper pane down:

1. Upper pane is S&P. It bounced nicely off the 52 weeks MA which acted as support => Market trend is UP.

2. Next pane is the HY Spread. It measures market/economic risk as assessed by pro bond traders => Risk is trending down, after being elevated since February this year.

3. Next pane is measuring sectors rotation between offensives (cyclicals) and defensive (staples, healthcare, utes). Trend up means rotation (cash flows) from defensive to offensive, which, as you can see, is happening now.

3. Last pane shows the continued unemployment claims trend. Trend up means the economy is losing jobs, down means the economy is gaining jobs.
How to interpret it in combination with the market trend: If continued claims is on trend up and the market trend (upper pane) is on trend down, we are going or already are in recession.
But now, the opposite is true, market trend is up AND continued claims trend is down => economy is expanding and employers are doing more hiring than firing.

All in all, these indicators point to the high probability the market (and economy) has absorbed the geo-political situation and its energy implications and is going back to a higher high. (of course, not investment advice ).

View attachment 62951

Interesting, good stuff. One maybe discordant note: just now HYG is at a 3 year high.
Regards, Dick
Edit: Ah, my bad. RISK is trending down. Got it. D

 

[joejetski]

CEFs? D

PDI only down .04 on an ex div day with close in 10 min. Seems like a win to me.

 

[COcheesehead]

Added to GOF on weakness. Goes ex on Wednesday

 

[IncomeOriented]

Sold a small trial position in DX to move to GOF. GOF appears to be a better opportunity.

 

[GaltintheGulch]

PDI only down .04 on an ex div day with close in 10 min. Seems like a win to me.

Added to PDI yesterday on the dip

 

[COcheesehead]

GOF is having a day.

 

[marget]

Took some profits in PAXS.
Still have enuff invested to meet monthly income goal.
Have a good deal (for me) amount of cash.
The nice thing about the ex-date stuff is that it's so clear-cut that one can plan around it easily.
It's almost 4 more weeks till the next ex-date.
Plus: May distribution is locked in. I'll either be able to buy back in or not, but there is no pressure b/c the monthly income goal is still there.