dennis5502
Dryer sheet aficionado
Dick --Took about 10% off CEF positions in iras. Bought SJB yesterday which is up since they buy. Nice counterbalance to declining high yield bond funds. Dennis
CEF Holdings --- May 2026
- Thread starter dickoncapecod
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PaulR888
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LOL. My history with the dude goes back a long way. Luckily my initial reaction did not post. What actually posted was probably version 3. He is what he his and will never change,
Old Dog Seeks New Tricks
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added 2000 to pdi ira position -
thinking out-loud --
when 10-y treas gets to 5%, where does pdi go? 17%, 18% - am i crazy to think that higher yields will have other investors looking at a broader range of yield products that might include bond like CEFs
thinking out-loud --
when 10-y treas gets to 5%, where does pdi go? 17%, 18% - am i crazy to think that higher yields will have other investors looking at a broader range of yield products that might include bond like CEFs
PaulR888
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Hi Dick ... I haven't looked at PAXS in a long time. Very interesting multisector fund with the best of the Pimco team. Looks like a cool portfolio diversifier. My simplistic cranium did key on the Z stat of -2.3%. I love buying things on sale.
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dickoncapecod
Thinks s/he gets paid by the post
Also 12.9+% and a rare discount. D
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dickoncapecod
Thinks s/he gets paid by the post
I've replaced almost all the PDI I sold last week.......got back for the pool and saw it below 16.50 and pulled the trigger.
Regards, Dick
I think you are very correct about higher yields interesting investors.
The next (possible low) is 16.00 The fact that it broke thru the 16.50 low means PDI will eventually test that 16.00 low from the tariffs in 2025.
I added at 16.50 when limit orders filled.
Because of the way everything is going at this time---my next limit order is: 16.00....IF it never fills that's fine w/ me. I think it will test 16.00 sometime during this summer.
IncomeOriented
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It appears we are living in the times of whipsaw and whiplash.
FlyingCircus
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It's not football season, but an inapt analogy: my quarterback took a brutal sack on 3rd down, hit by three defenders. Below. So I punted to mostly cash today, 1st time since Q1 '22.
- Japan, China lead foreign government retreat from U.S. Treasurys as Iran war stokes currency fears,
30-year Treasury yield tops 5.19%, highest since before the financial crisis
S&P500 has 3rd straignt losing session as rising yields drag down stocks.
FC
if I sold at the eventual near-term bottom as common, you're all welcome.
- Japan, China lead foreign government retreat from U.S. Treasurys as Iran war stokes currency fears,
30-year Treasury yield tops 5.19%, highest since before the financial crisis
S&P500 has 3rd straignt losing session as rising yields drag down stocks.
FC
if I sold at the eventual near-term bottom as common, you're all welcome.
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dickoncapecod
Thinks s/he gets paid by the post
It's interesting that investors are pleased to purchase other CEFs in the PIMCO suite at yields around 13% but are also happy to sell one --- PDI --- at about 16% (Fed policy rate +12.4% and 10yr Treasury + 11.3% and the past multi-decade high of inflation +7.0%). Cash down to 26%.
Regards, Dick
Regards, Dick
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Retail = emotions
FlyingCircus
Recycles dryer sheets
Yup. And PDI in 2022 was -17% with dividends reinvested.
PaulR888
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Yes, but my portfolio is designed to cope with this. Bond CEFs are not core bond funds. My core bond funds are in my bucket 1 and generally worst case is single digit losses. My bond CEFs are out in a longer time line bucket so they continue to give me yield and I give them time to recover. PDI bounced back in 2023-2025. Gundlach said 2022 was the worst year for bonds in his 40 year career so sure 2022 was ugly.
IncomeOriented
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Dick, you continue to amaze me with your talent for trading up your current yield. I’ll have continue to admire rather than emulate you…
As my dear father often said, “Well son, that’s the difference between a race horse and a mule.”
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dickoncapecod
Thinks s/he gets paid by the post
Even a blind squirrel finds an acorn now and then. D
richardsok
Recycles dryer sheets
I completed a little project this morning by asking four different AI software sites the same question: "COMPARE DIVIDEND COVERAGES OF ALL PIMCO CLOSED END FUNDS". I asked that identical question of GEMINI, GROK, CREAO and CLAUDE and took notes comparing their answers. Of the four, claude.ai was by far the clearest and most comprehensive. Some ai sites relied too much on cefconnect. Gemini was correct but vague in talking about "other income sources" and ROC but never specifying. But here's an excerpted section of claude's response:
-------------------.
This is a nuanced topic because PIMCO's coverage picture has two layers: traditionalNII coverage and"truecoverage"that includes at-the-money (ATM) share issuances.
PTY.... and PCN …. both trade at large premiums and have good liquidity — with average daily volume of 5.6M and 2.2M shares respectively — which allowsthem to issue a lot of new shares relative to their sizes, puttingtheir "true coverage" at a very high level.
-------------------.
PIMCO CEF Dividend Coverage: What You Need to Know
This is a nuanced topic because PIMCO's coverage picture has two layers: traditionalNII coverage and"truecoverage"that includes at-the-money (ATM) share issuances.
TraditionalNII Coverage (Net Investment Income only)
The average taxable PIMCO CEFcoverage has been running around 70%, meaning NII alone doesn't coverdistributions … On this basis, no single fund stands out asdramatically better — they're all in a similar range below 100%."TrueCoverage" (NII + ATM Offerings) — The Better Metric
This is the more meaningful figure.... funds that trade at a premium ... can issue new shares via ATM programs, generating cash that supplements NII to coverdistributions. .... PDI ….. the ATM offering alone isenough to cover the distributions ($925M vs. $764M in distributions) ( ! ! ! ! ) Add in the $512M of net investment incomeand PDI's "true coverage" comes to approximately 188%.)PTY.... and PCN …. both trade at large premiums and have good liquidity — with average daily volume of 5.6M and 2.2M shares respectively — which allowsthem to issue a lot of new shares relative to their sizes, puttingtheir "true coverage" at a very high level.
Summary byFund Type
| Fund | Traditional Coverage | True Coverage Outlook |
|---|---|---|
| PDI | Below 100% | ~188% (best in suite) |
| PTY | Below 100% | Very high (large premium + liquidity) |
| PCN | Below 100% | Very high (large premium + liquidity) |
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Nice trade Dick.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I also appreciate the JFR suggestion. I moved a bunch of cash into it and it’s been paying off.
GaltintheGulch
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dickoncapecod
Thinks s/he gets paid by the post
It amazes me that trillion$ have been spent only to give us web scrapers that present "findings" without nuance and clearly (expected) without human understanding. Not you @richardsok but others who rely on such "output" learn nothing to their detriment.
Regards, Dick
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dickoncapecod
Thinks s/he gets paid by the post
Lightened up a bit before Fed minutes....up to 33% cash.
Regards, Dick
Regards, Dick
Maybe, but I also wonder if the younger investors are the ones driving the bus, and don't care as much due to long time horizons. Everything may look cheap to them right now. Most old investors already seem to have pulled back previously.
The problem that I have with all of this, is knowing if this is a buying opportunity, or a selling opportunity. And that probably depends on what risk assets we are talking about. Even FED minutes are now showing talk of rate hikes. Inflationary pressures may have a lot of momentum behind them, all things considered.
I am still sitting tight - for now. Added to CEFs not long ago, so at around 11% of portfolio.
$100 oil and potential rate hikes, the market seems pleased. IDK what to think. Two days ago, I considered selling bond CEFs and OEFs.
I am not so much impressed by the product, as the amount of money and effort flowing into the space. We can be certain there will be big losers, big winners, and lots of consolidation, before the real value is discerned.
I agree that it seems to be a fancified search product at this point. But, with enough processing power, data scraping and data storage capacity, who knows where this all ends up. Right now there is massive corporate FOMO in that space.
IncomeOriented
Recycles dryer sheets
I’ll add some second hand knowledge:
My son is an engineer and has been successful as an international supply chain consultant. He uses AI constantly for many tasks that could fall under the category of information management. I’m not so impressed with that part of it.
But he also uses AI to create programs, writing code for him, like 24 hours a day.
The key he tries to explain to me, is that he has decades of experience to quickly spot AI hallucinations and other AI phenomena that I’m clueless to understand.
He can not only spot the phenomena, he can correct it. He even has used AI to create code for “assisting “ him with his corrections.
Now here’s the part that all the techies that I know get mad at me about…
IMHO without intelligent experienced oversight, AI is absolutely not ready for prime time. Further, uncontrolled AI will probably be dangerous.
At some point that window at 22,250 will come into play for the Nasdq. It will represent a 16.6% correction. The S&P also has this same window, which makes this window point stronger for being reached.
For now the Nasdq is holding close to the 10 ema, which is a good sign and place for it. It doesn't seem like this is close to happening. At the same time, it is a point to keep in mind b/c PDI follows the Nasdq. I don't know why it does this; it's not a stock. Yet over time, I have noticed PDI follows the Nasdq.
Also PDI has not been able to hold a FTD since that April 16.50 mark. This needs to be remembered.
So, when the Nasdq starts to correct, it will head towards that window at 22,250 and PDI will head towards the tariff low of 16.00.
reference point marks ------for now----to not forget---for the summer
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