Hi Paul. No point in rehashing it a length, but TR does not imply or assume anything about buying and selling. It DOES assume holding the asset throughout the measurement period. And while choosing not to avoid drawdowns is...well, a choice....it dramatically diminishes long term portfolio returns.
Yes. PDI was up on the week and on a daily but not weekly MACD buy signal. It has been beaten up so badly --- to a 16.3% yield at worst! --- that the chart formation is different from its LOWER YIELDING PIMCO brethren. Still my largest position.
Thanks for posting. Worth remembering: this table is NII ONLY. It does not include accrued but unrealized swap book income or ATM sales premium capture which are substantial for several funds. And the low NII coverage is perhaps the only reason PDI ALREADY yields 4% more than peers.
mine too!
Hi!
Hi Todd. It strikes me that IF IF IF the fund board wanted to cut a distribution, it would be PDI ---- BUT they would have no obvious reason to do so. In fiscal H1, PDI earned NII 94c, net real/unrealized 17c and premium capture 18c = 129c so it fell 3c short of covering its distributions. For fiscal H2, we won't know for 60-70 days, but NII should be about the same, portfolio marks will probably exceed swap accruals, but PDI holds cash to pre-distribute accrued swap income (see top 10 holdings!), and we can only guess at ATM premium capture....it could be less or more than HI 18c. In any event, the 72% NII coverage --- if unexplained --- paints a picture folks can enjoy fearing.
Not bad for a 12 minute "talkie" and more useful than most marketing bits. Unfortunately lacks nuance, seems to mistake NII for only source of distributable income, assumes higher leverage costs will hurt performance because he overlooks large floating rate holdings, and derivative books deserve at minimum a mention. Thanks for posting. FWIW, I share his view on PTY.
Interesting AI "choice" of ECAT. Fine returns, but between 2% and 6% lower total return than SPY for 23-24-25. But lost less than SPY by 4% in rough 2022. Meets expectations for a balanced fund, but a "top pick"?
Yes it was, today anyway in some spots. I think I qualified “consistent stable income only”.
Hi Dick .... PDI was created with the merger of a few Pimco CEFs that I was not in love it. What do you think happened to the various legacy holdings at the time of merger? Have they all turned over so that now the portfolio is a cohesive portfolio to the PMs liking? Or are the PMs still saddled with some legacy holdings that they are just trying to do their best with?
You may not have liked PKO PDI and PCI, but they were very popular and well performing at the time of the merger. It's been a while so I doubt many assets have survived -- except, of course, the extraordinary busted MBS from the GFC. Odd question, since there were no meaningful manager changes in the merger, and professional managers are never "stuck" with assets they are unhappy with ---- they simply sell them.
He does no "marketing" for any particular fund(s), purely informational.
Thanks Dick. It was PKO I was not fond of. But PDI is a biggie size AUM CEF and there has to be efficiencies with that. I generally like CEFs with AUM over $1B, but I can't give you a clear reason. Is there one?
Seeking Alpha....I'm sure the gent doesn't present research with such hi-grade production values just for fun.
Didn't realize Seeking Alpha was a fund? He charges to belong to a group called Armchair Insider. That's where he get's his money for production (and I'm sure a little more).
Seeking Alpha is a multiauthor site with other features that charges fees and supports fee-based advisories. Of course it is not a fund, it is an investment advisory business.
I know. I said the guy doesn't get paid from funds and you mentioned Seeking Alpha. Never mind.
My third largest position. I've been adding at discounts FWIW.
