Seeking Alpha

Heavy selling hits a number of Pimco income funds, notably the High Income Fund (PHK -4.3%) with...

Heavy selling hits a number of Pimco income funds, notably the High Income Fund (PHK -4.3%) with heavy exposure to high-yield paper and the financial sector. The decline narrows the fund's premium to NAV to a still-whopping 34%. The Income Opportunity Common Fund (PKO -2.2%) trades at just a slight premium, while the Dynamic Income Fund (PDI -2.8%) sells for about a 5% discount. Others: (PTY -3.6%), (PCN -2%), (PGP -5.3%), (PFN -1.5%).
Comments (3)
  • 7of9
    , contributor
    Comments (366) | Send Message
     
    What happened with Pimco CEFs today? Is this a premium correction? A buying opportunity for now discounted Pimco CEFs?
    28 May 2013, 07:19 PM Reply Like
  • ace41
    , contributor
    Comments (8) | Send Message
     
    I will consider PTY a buying opportunity if Gross steps in and makes a buy soon. He has made significant buys on previous dips of this magnitude and he recommended PTY in the Barron's Roundtable this year. He did sell 79000 shares from his children's account a couple of weeks ago - a relatively small amount of his total holdings. I did not take that as a sign of his pessimism. Most of us yield-seekers have been mindful of the game changing when rates start to move up, so I guess it's no surprise that no one wants to be the last one standing with leveraged assets. Having survived
    2000/2001 and 2008/2009 panics, I'm holding to find more evidence of a real change.
    29 May 2013, 11:14 AM Reply Like
  • Michael123a
    , contributor
    Comments (124) | Send Message
     
    The last time I looked, the NAV for PTY is 17.75. Not as much premium to NAV as it has been for the past several years. Gross has recommended PTY in the past, esp. Barrons. I have a small position, but I am watching to get in closer to the NAV. Gross and Gundlach are the two fixed income masters that have more to say than just background noise.
    30 May 2013, 09:56 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs