CEF Holdings --- June 2026
- Thread starter dickoncapecod
- Start date
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dickoncapecod
Thinks s/he gets paid by the post
Sure, yes. And you don't have to wait at all to reinvest in a different PIMCO CEF. I've always had a fun fantasy about defending against a wash sale ruling on a different CEF:
"Your Honor, the IRS claims (say) PTY and PDI are the same security. But I'd like to point out that they have different names, different portfolio contents, different durations....in fact, these CEFs do not appear "the same" in ANY way."
Regards, Dick
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dickoncapecod
Thinks s/he gets paid by the post
I sold my small RCS for a good profit, up 2 or 3 months distributions just this morning. Yeah, it looks great on a chart and might even get a distribution hike, but I want a little cash for higher yielding CEFs --- 8+% vs 12% to 18%.
Regards, Dick
Regards, Dick
PaulR888
Recycles dryer sheets
Thanks Dick. FYI, I notice your PHK has a Z stat of -2.04. hmmm ....
PDi is an income investment. It has not cut its dividend, so you are getting what you bought. There is no loss unless you sell it. Just enjoy the income stream and let the price jump around.Having begun accumulating PDI back in oh, Oct or so, my cost basis was around $18.50.
I did sell some at a loss and rebought near the recent low ($16.50 or so), which has brought my cost basis down to $18.00.
Now I gotta wait awhile for those dividends to cover that loss
So far this experiment hasn't gone well for me!
pwf
It all depends what you do with them. You can reinvest them or invest them somewhere else. You can't view taking the dividends in isolation.
stefansm
Recycles dryer sheets
Today:
I agree totally. It is a "me" problem that I seem to buy at the wrong time. Plus, many participating in this thread series thought that it was clear sailing near the end of 2025. So, those of us waiting on balance recovery all had the same bad timing. My PDO (purchased 2022/2023) recovered eventually and is now about 60% more than my original investment. I have been reinvesting. My original $150K in PDO is generating about $29K annually at this point. I expect something similar with PDI. And there was a cost to the learning process.
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dickoncapecod
Thinks s/he gets paid by the post
Precisely. Whole PORTFOLIO wealth is the key measurement, and outcomes are INVESTORS' CHOICE: reinvest in PDI, spend it on groceries, or buy AAPL. Investors' choices have no bearing on PDI performance.
Regards, Dick
Lawrencewendall
Thinks s/he gets paid by the post
A buddy of mine ran my holdings through Brave AI. He was looking at SGOV to park money. Here is what he got back:
Comparative Overview
*Yields are approximate based on recent market data (May 2026) and fluctuate daily with share price.
Capital Stability vs. High Income
SGOV stands alone in this group as a capital preservation tool. It holds US government debt with maturities of 0 to 3 months, meaning its share price remains extremely stable (typically around $100), and it pays monthly dividends derived entirely from interest rates. It is suitable for parking cash but does not offer the income magnitude of the other funds.
In contrast, the other seven tickers are Closed-End Funds (CEFs) or business development companies that utilize leverage and complex derivatives to generate massive income. OXLC, ECC, and OCCI are notable for their exposure to the equity tranches of CLOs, which offers the highest yields (often exceeding 35-40%) but subjects investors to significant price erosion during credit downturns. For instance, OXLC recently raised its dividend, yet its share price has historically declined over the long term, meaning total return relies heavily on reinvesting those massive dividends.
SGOV vs OXLC vs PDI total return comparison
View all
Strategic Differences in Credit Funds
Among the high-yield credit funds, strategies diverge significantly regarding asset selection and option usage:
Critical Risks: Expense Ratios and NAV Erosion
Investors in these high-yield funds must account for high expense ratios, which directly reduce total returns. Funds like OXLC have reported expense ratios exceeding 12% in some periods due to incentive fees and management costs, while others like PDI and GOF typically range between 2% and 3%.
A common phenomenon in this sector is NAV erosion, where the fund's share price drops over time even if dividends are paid. This occurs because the high payouts often exceed the fund's actual earnings, forcing them to return capital to shareholders. While SGOV aims to maintain a stable $100 share price, funds like OXLC and CRF (a peer often discussed in this context) have seen share prices decline significantly over decade-long periods, making them suitable primarily for income generation rather than capital appreciation.
Comparative Overview
| Ticker | Name | Primary Strategy | Approx. Yield* | Risk Profile | Key Characteristic |
| SGOV | iShares 0-3 Month Treasury Bond ETF | US Treasury Bills (0-3 months) | ~4.5–5.0% | Very Low | Capital preservation; yield fluctuates with Fed rates. |
| PDI | PIMCO Dynamic Income Fund | Multi-sector credit & derivatives | ~16% | High | Aggressive use of leverage and options; high total return potential. |
| ECC | Eagle Point Credit Company | CLO Debt & Equity | ~38% | Very High | Invests in both debt and equity tranches of CLOs; high volatility. |
| GOF | Guggenheim Strategic Opportunities | Multi-asset credit opportunities | ~20% | High | Flexible mandate; often trades at a premium to NAV. |
| OCCI | OFS Credit Company | CLO Debt & Equity | ~36% | Very High | Similar to ECC; focuses on income from CLO structures. |
| OXLC | Oxford Lane Capital | CLO Equity & Debt | ~48% | Extreme | Highest yield on list; heavily weighted toward riskier CLO equity. |
| OPP | RiverNorth/DoubleLine Strategic Opportunity | Private Credit & Real Estate | ~10–12% | Moderate-High | Focuses on private credit and real estate debt; lower yield than CLO peers. |
| XFLT | XAI Octagon Floating Rate Trust | CLO Debt & Equity + Options | ~27% | High | Uses a "covered call" strategy on a CLO portfolio to generate income. |
Capital Stability vs. High Income
SGOV stands alone in this group as a capital preservation tool. It holds US government debt with maturities of 0 to 3 months, meaning its share price remains extremely stable (typically around $100), and it pays monthly dividends derived entirely from interest rates. It is suitable for parking cash but does not offer the income magnitude of the other funds.
In contrast, the other seven tickers are Closed-End Funds (CEFs) or business development companies that utilize leverage and complex derivatives to generate massive income. OXLC, ECC, and OCCI are notable for their exposure to the equity tranches of CLOs, which offers the highest yields (often exceeding 35-40%) but subjects investors to significant price erosion during credit downturns. For instance, OXLC recently raised its dividend, yet its share price has historically declined over the long term, meaning total return relies heavily on reinvesting those massive dividends.
SGOV vs OXLC vs PDI total return comparison
View all
Strategic Differences in Credit Funds
Among the high-yield credit funds, strategies diverge significantly regarding asset selection and option usage:
- CLO Equity Focus: OXLC, ECC, and OCCI derive income from the residual cash flows of CLOs after debt holders are paid. This "equity" position is the first to absorb losses if borrowers default, leading to high yields but high risk of permanent capital loss.
- Multi-Sector & Leverage: PDI (PIMCO) and GOF (Guggenheim) employ broader mandates. PDI is known for an aggressive approach using interest rate swaps and credit default swaps to enhance yield, while GOF often invests in distressed debt and loans across various sectors.
- Option Overlay: XFLT distinguishes itself by holding a portfolio of CLO debt and equity and then selling call options (covered calls) on that portfolio to generate additional premium income. This can provide slightly more stability than pure CLO equity funds but caps upside potential during strong bull markets.
- Private Credit: OPP focuses more on private credit and real estate debt rather than the syndicated loan market dominant in CLOs. This generally results in a lower yield compared to OXLC but potentially different diversification benefits.
Critical Risks: Expense Ratios and NAV Erosion
Investors in these high-yield funds must account for high expense ratios, which directly reduce total returns. Funds like OXLC have reported expense ratios exceeding 12% in some periods due to incentive fees and management costs, while others like PDI and GOF typically range between 2% and 3%.
A common phenomenon in this sector is NAV erosion, where the fund's share price drops over time even if dividends are paid. This occurs because the high payouts often exceed the fund's actual earnings, forcing them to return capital to shareholders. While SGOV aims to maintain a stable $100 share price, funds like OXLC and CRF (a peer often discussed in this context) have seen share prices decline significantly over decade-long periods, making them suitable primarily for income generation rather than capital appreciation.
Steelpony
Full time employment: Posting here.
I can give you one example so far as a buy and hold investor since the bank crisis.
The z score, corrections, recessions, market swoons are all sales and opportunities to lower your cost basis over time (manually) as/if prices erode. You turn a fact to your advantage. You manage.
So after about 17 years now values of our group are down 3.51% as of today.
Like others I got stuck only with the few I didn’t do the above DCA with.
The biggest one was when PIMCO merged PCI and PKO into PDI. In hindsight I should of dumped the whole mess then and started over. But still the group stat seems ok to me and I’m near 7 figures in distributions in this section of our portfolio.
The z score, corrections, recessions, market swoons are all sales and opportunities to lower your cost basis over time (manually) as/if prices erode. You turn a fact to your advantage. You manage.
So after about 17 years now values of our group are down 3.51% as of today.
Like others I got stuck only with the few I didn’t do the above DCA with.
The biggest one was when PIMCO merged PCI and PKO into PDI. In hindsight I should of dumped the whole mess then and started over. But still the group stat seems ok to me and I’m near 7 figures in distributions in this section of our portfolio.
PaulR888
Recycles dryer sheets
Nice to see confirmation from the Chief.
BuckeyesRC
Recycles dryer sheets
I wanted to tell you that I have appreciated your posts on the managed futures funds. I see the utility of making them long-term holdings and recently added CTA to my Roth. A smart approach!
Steelpony
Full time employment: Posting here.
Funny I did the same thing with our HY holdings as well as the rest of our investable assets this morning.
I think if one is just picking up positions based on what they think or using other basic tools it’s a good exercise to learn from. See how much risk you might be taking.
I already knew I was the devils spawn using primarily CEF’s for income but the tone changed somewhat as I progressed down the rabbit hole. I did ( I think) make a few small changes for the better though.
CTA is also one that i'm going to invest in....have logged on a bit too late for today. But, it is in a price range I think looks very good due to a lot of present exuberance. Thanks for mentioning it b/c i'd forgotten about CTA. It's also nice that @stefansm posted it in his holdings. He seems to use mostly DBMF and hardly ever mentions CTA. When I was studying up on them (also thanks to stefansm), CTA was the one that looked like what I would want. There were 3 mentioned : CTA, DBMF, KMLM as I recall.
Roth:
PDI: 24.29%
PAXS: 7.96%
PDO: 14.42%
PFN: 6.63%
Cash: 40%
IRA:
PDI: 62.84%
Cash: 37.16%
There are still some 7 days b/f the ex-date
Plus, CTA is something I want to buy tomorrow.
I think probably posting once a month can be misleading. By ex-date, i'll have a very different PF.
Today, I sold some ADBE shares to buy PDI w/o using the Cash amount.
edit: I think i'll stick w/ what i have. The only thing i'll add to is PDI. I have stop loss orders in place for the other 3 cefs. I have no stop loss orders for PDI. This way, i can focus only on PDI. I like the looks of the c-sticks, base or ceiling doesn't matter at this moment. They seem to indicate ceiling, but i just don't see it going lower than $16.47 at this time till ex-date.
So: cefs: green, many more shares, (for me) a lot of cash.
PDI: 24.29%
PAXS: 7.96%
PDO: 14.42%
PFN: 6.63%
Cash: 40%
IRA:
PDI: 62.84%
Cash: 37.16%
There are still some 7 days b/f the ex-date
I think probably posting once a month can be misleading. By ex-date, i'll have a very different PF.
Today, I sold some ADBE shares to buy PDI w/o using the Cash amount.
edit: I think i'll stick w/ what i have. The only thing i'll add to is PDI. I have stop loss orders in place for the other 3 cefs. I have no stop loss orders for PDI. This way, i can focus only on PDI. I like the looks of the c-sticks, base or ceiling doesn't matter at this moment. They seem to indicate ceiling, but i just don't see it going lower than $16.47 at this time till ex-date.
So: cefs: green, many more shares, (for me) a lot of cash.
Last edited:
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I use an AQR fund for my managed futures holding. QMHNX
Chart vs CTA
Chart vs CTA
Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
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- 20,268
I read this all the time and it is so false... because the opposite is you have not made money unless you sell it... but everybody talks about how much they have 'made' when their stocks go up..
I have a preferred stock that stopped paying dividends... down to almost zero... I have LOST money and I have not sold it... it is just wrong to think I have what I put into buying it..
BuckeyesRC
Recycles dryer sheets
I agree, though, an unrealized gain is not money you have made. It can disappear at any time. I would only consider the money "made" is the actual realized cash. Steve Selengut's philosophy of "working capital" in his book the Brainwashing of the American Investor has changed my thinking in this regard. As an income investor, market value is not really worth tracking; rather, the metrics that matter are Cost Basis and Cash (Working Capital), Base Income (distributions and realized profits), and Projected Income. Naturally, I take a lot of profits and redeploy the cash into other income funds, except for those I purposely hold for the sake of ROC benefits.
Good choice. I dropped small trial holdings of CTA and DBMF but decided to use a combination of QNZNX and QRPNX to fill this role in my portfolio.
They have even higher returns over three years.
Ok, so now i need to really study qnznx, qrpnx, qmhnx, cta------tonight
CTA = Commodity Trading Advisor (a type of registered professional/firm)
.QMHNX = a specific investment product (a closed‑end fund ticker), not a person or registration category.
Flyfish1
Thinks s/he gets paid by the post
Not a CEF - but for many years I had money with Dunn Capital Management , Home - Dunn Capital.
I like having assets with lower correlation to market movement.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have those two as well. Very happy with my current AQR holdings, but won’t discuss further in the CEF thread. Lots posted about these in the Alternative thread. I now return you to your regularly scheduled program.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Yep. The truth is you start each day with what you have. That’s your worth. Like it or not. Mental accounting is just that. Math salad.
FlyingCircus
Recycles dryer sheets
May CEF results: -1%; 3% reduction in allocation net of mid-month whipsaw sales & rebuy.
Total CEF holdings 38%
Total CEF holdings 38%
| PHK | 6% |
| WDI | 7% |
| PDO | 10% |
| SPHY | 7% - happy with 7% base yield & stable price |
| PCN | 6% |
| PFN | 1% |
| PDI | 1% - tired of persistent price drain |
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