CEF Holdings --- February 2026

Here's where I stand currently:

PDI 38%, PHK 17%, PFN 15%, WDI 6%, GOF 5%, DMO 4%, PTY 3%

I trimmed PAXS mid-week to grab 4% gain plus dividends. I rolled this into WDI because I like how the NAV is tracking since Dec.

I also added to PDI on the dip today, turned out that was a good move based on how it closed. I may be a little overweight, but the 14+% divy and drip is $$.

All holdings are on the DRIP!!

Best to all,
Todd
 
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for you FSCO holders. Obviously, you believe it is on the mend. I own it and it is the worst performer. What makes you still like it?

If I am remembering correctly, the beatings began when First Brands, which I believe they owned / loaned money to went south. It's been downhill ever since. I've let it run / drip but it's still down more than everything else.
 
Tommyboy said:
for you FSCO holders. Obviously, you believe it is on the mend. I own it and it is the worst performer. What makes you still like it?

If I am remembering correctly, the beatings began when First Brands, which I believe they owned / loaned money to went south. It's been downhill ever since. I've let it run / drip but it's still down more than everything else.
Click to expand...
I bought it recently thinking it was over the beatings. Obviously the beatings just began for me. Should have listened to Dick.
 
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PDI 14%.
1-5%: PDO, DMO, DBL, FFC, PFN
too small to matter: PAXS, JFR, KIO, OXLC, PHK

As noted last month, PDI yields considerably more than its PIMCO sibs.

Observation: PDI, PAXS and PHK have been performing similarly at the NAV level. PDO is doing a bit better. PFN too, maybe less so.
(based on 1 year NAV vs mkt price charts)

Action: I've been gradually selling off PAXS and PHK as they approached recent highs in January. In effect, this is retroactively rolling the lower-yielding sibs into PDI, which I bought during the December blues.
 
Not much variation from January -19 CEF positions. CEFs represent 35% of my equities or 15% of my entire portfolio. Per equity portion:
NMCO 4% (or 11% of my CEF allocation)
ETV 4%
NZF 3.5%
UTG 3%
THQ 2.5% (or 5.1% of CEFs)
 
Well, hi! VERY sorry that a post-op bleed --- more painful than anything I'd ever experienced --- interrupted the weeklies, but hopefully that won't happen again(!!!)

The week ended 1/30 was a very low volatility week in most fixed income products, with a slight positive tone in several bondish income CEFs. Several are on new weekly MACD buy signals: PDI PHK PAXS GOF. PHK and PAXS made new (stockcharts) 2-yr highs. Meanwhile portfolio component ETFS HYG LQD MBB IEF wandered around unchanged.

Fed funds futures estimate a Fed cut in June and a high likelihood cut in December that would bring YE 2026 to 3.12%. The year bill one year forward is 3.58%, and Fed guide inflation breakeven 5ys 5yrs forward is just under 2.25%.

Data I noticed during the week included a downside surprise in consumer confidence. Home prices Y/Y are down about 2%, which should impact inflation data sometime before the next Ice Age thanks to its silly lagged design as a large component of inflation indices. GDP sorta surprised to the upside thanks to tariff effects on international trade that are already reversing. PPI was a little higher than expected, but nobody cares because, as JPOW said at his news conference, policy makers think tariff effects are passing and basically look at unalarming inflation measures ex-tariff effects.

More esoteric --- but I think important --- Fed balance sheet stuff with the hyperbolic point-making drained away. The SIZE of the Fed balance sheet was 4.0T in 2020, hit COVID high 9.0T in late 2022, and is now down to 6.6T ---- net up from 4.0 during a 5yr period of reasonable broad economic growth. Maybe it can shrink a bit more, but also maybe it's close to right. MORE IMPORTANT: excesss reserve balances are currently 2.9T, down from a COVID 4+T and THE SAME AS IN 2015.

OPINION: Bondish CEF prices will surely wiggle around with mood swings and institional execution follies, but up here at 11+% to 14+%, it barely matters whether Fed funds are 3.6% or 3.3% or even 3.8% down below. I think market prices will probably move up a bit just because these CEFs are so relatively cheap, but I suspect MOST of 2026 total returns will come from the rich distributions --- which fits my income portfolio strategy just fine.
Regards, Dick
 
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Taxed Acct MLPI 6.2 % GOF 12.3 % NEA 13.9% NVG 14.1% NZF 13.6% NAD 13.9% CASH 24.2%
VANG, Managed Acct. VTI 22.7% VXUS 10.9% BNDX 20% BND 46.4%
IRA 1. FSCO 8% GOF 15.6% PTY 27.3% PDI 29.2% PHK 9.7% CASH 10.2%
IRA 2 PDI 71.2% CASH 28.8%
ROTH PDI 94.7% CASH 5.3%
Will be 84 in August just to show what I am doing at this age,
 
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Tommyboy said:
for you FSCO holders. Obviously, you believe it is on the mend. I own it and it is the worst performer. What makes you still like it?

If I am remembering correctly, the beatings began when First Brands, which I believe they owned / loaned money to went south. It's been downhill ever since. I've let it run / drip but it's still down more than everything else.
Click to expand...
I too have entered negative TR territory starting at the end of September 2025. I made small adjustment down but still have close to 5% holding. It has paid me well, but the TR pain is becoming noticeable and may require further adjustment.

Flieger
 
dcowboys101 said:
Taxed Acct MLPI 6.2 % GOF 12.3 % NEA 13.9% NVG 14.1% NZF 13.6% NAD 13.9% CASH 24.2%
VANG, Managed Acct. VTI 22.7% VXUS 10.9% BNDX 20% BND 46.4%
IRA 1. FSCO 8% GOF 15.6% PTY 27.3% PDI 29.2% PHK 9.7% CASH 10.2%
IRA 2 PDI 71.2% CASH 28.8%
ROTH PDI 94.7% CASH 5.3%
Will be 84 in August just to show what I am doing at this age,
Click to expand...
nice!
i'm right on your heels
decently high monthly income
very little buying and selling is needed
The reason I have so few holdings is that I just can't handle more
I don't expect to have to sell any of the PDI I own for maybe the rest of my life
 
So grateful that our mentor @dickoncapecod is back. Wisdom, perspective, and calm matter—especially in CEF land.

For context, here’s how my CEF positions currently line up (percentages are of total portfolio):

  • PDI – 6.17%
  • PDO – 2.98%
  • BME – 3.29%
  • PHK – 2.39%
  • PAXS – 2.31%
  • ADX – 2.13%
  • PFN – 1.83%
  • CSQ – 1.67%
  • RLTY – 1.36%
Recently, I trimmed PAXS on a nice profit and redeployed into PDI, GDSX, QLENX, and PYLD—leaning a bit into income plus selective risk where I think the odds are improving.

Markets will always test conviction. Rebalancing helps. Perspective helps more.

But still…
Is hope a strategy?
 
So, I'm holding small stakes in PDI 5.5% and PTY 2%. These are my only CEFs.

Despite their low weight, they're delivering about 25% of my current income.

I'm thinking of selling PTY and moving that cash to PDI. Thoughts? Greedy or just cleaning up the portfolio a bit? Increasing risk? Too small to matter either way?
 
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Still, just PDO, PFN & PDI making up 11% of my total portfolio. 45/21/34.
Selling some PFN and plan to buy PDI or PAXS with proceeds. See last paragraph.

Repost from Jan CEF thread. Responding to the question about owning more than one Pimco CEF - and a bit more.

My reason for owning more than one PIMCO CEF is the differences in premiums, I try to buy/add when premiums and/or prices are lower. And because they seem to have different holding allocations, in regard to credit quality and types of debt. I feel that I get a more balanced exposure. I also have some PIMIX to lower the volatility of my FI allocation.

It seems that many who are successful here with Pimco CEFs have a different approach: bulking up on whichever funds are generating the most income at any time, and trading more frequently.

As a buy/hold CEF investor, if one were interested in holding PDI, PDO, PAXS & PFN what allocation to each would be recommended at this time? As I am moving things around a bit, I am seeking some guidance.
 
dcowboys101 said:
Taxed Acct MLPI 6.2 % GOF 12.3 % NEA 13.9% NVG 14.1% NZF 13.6% NAD 13.9% CASH 24.2%
VANG, Managed Acct. VTI 22.7% VXUS 10.9% BNDX 20% BND 46.4%
IRA 1. FSCO 8% GOF 15.6% PTY 27.3% PDI 29.2% PHK 9.7% CASH 10.2%
IRA 2 PDI 71.2% CASH 28.8%
ROTH PDI 94.7% CASH 5.3%
Will be 84 in August just to show what I am doing at this age,
Click to expand...
May I ask why hold any cash in an IRA or Roth? Transitional moment? Not a judgement, just curious.

My strategy has always been to maximize our Roths with our riskiest assets. Maximize our TIRA with next riskiest. 401K a bit more balanced with a 58/42 allocation, and where my CEFs reside. And holding any cash in MMF and TBUX in our taxable accounts. Our total portfolio is 63/37. I include my CEFs and cash in the FI portion, but remain aware that they are not to "ballasty".

The idea being that the biggest earners are then tax-free, followed by tax-deferred.
 
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CEFs are 20% of my total portfolio. Of that: PDI 65% ETV 14% PDO 12% PTY 10%.

In January, I added a little to the 3 Pimcos. I like these, in part, due to greater liquidity/trading volume. My HSA is 100% PDI. On occasion, I consider simply folding my (Roth IRA) PDO and PTY into PDI and call it a day. I would either be ahead or behind, or somewhere in the middle, and whether that would be material to me.
 
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