Wed, Jun. 29, 5:08 PM
Tue, Jun. 7, 12:15 PM
- The paper's Randall Forsyth over the weekend screened for nine high-yielding fixed-income CEFs trading at discounts to NAV, and where the fund managers eat their own cooking. Given the weak payroll numbers Friday, and the Fed's continued caution on rate hikes, they might be worth a look, he writes.
- All are higher so far this week: Pimco Dynamic Credit Income (NYSE:PCI), Prudential Short Duration High Yield (NYSE:ISD), Prudential Global Short Duration High Yield (NYSE:GHY), Dreyfus High Yield Strategies (NYSE:DHF), Putnam Premier Income Trust (NYSE:PPT), BlackRock Corporate High Yield (NYSE:HYT), BlackRock Debt Strategies (NYSE:DSU), Neuberger Berman High Yield Strategies (NYSEMKT:NHS), AllianceBernstein Global High Income (NYSE:AWF).
Tue, Mar. 22, 5:07 PM
- The board approves changes to the non-fundamental investment policy (a policy that may be changed by the board w/o shareholder approval).
- As of April 22, PCI's mandate - to invest at least 50% of assets in corporate paper issued by U.S. or foreign companies, including emerging market companies - is rescinded.
- Pimco believes this will allow the fund to be more tactical, with greater flexibility to put money into non-corporate credit-related assets.
- Source: Press release
Fri, Mar. 18, 7:25 AM
- Eagle Pharmaceuticals (NASDAQ:EGRX) receives a Complete Response Letter (CRL) from the FDA regarding its New Drug Application (NDA) seeking clearance of KANGIO (bivalirudin injection), an intravenous formulation of 5 mg/mL bivalirudin for use as an anticoagulant in patients undergoing percutaneous coronary intervention (NYSE:PCI) (with the use of a glycoprotein IIb/IIIa inhibitor), patients undergoing PCI with or at risk of heparin-induced thrombocytopenia (low platelets) and thrombosis syndrome and patients with unstable angina undergoing percutaneous transluminal coronary angioplasty.
- A CRL means that, in the FDA's view, the application is not approvable in its present form. Specifically, the agency requested further characterization of bivalirudin-related substances in the drug product. The company remains committed to KANGIO, a ready-to-use formulation of The Medicines Company's Angiomax (bivalirudin), and will work closely with the FDA to address the deficiencies and clarify a path forward.
- Shares are down 16% premarket on modest volume.
- Previously: Eagle Pharma submits NDA for ready-to-use bivalirudin (May 20, 2015)
Sep. 2, 2015, 1:08 PM
- The Pimco High Income Fund (PHK -8.6%) cuts its monthly distribution by just under two cents to $0.10346. With the fund trading at about a 33% premium to NAV as of the close yesterday, there's plenty of room for investors to show disappointment.
- Look out below, warned SA's Value With A Catalyst in a particularly well-timed article in early April (PHK was then trading at a 65% premium to NAV). With a change in managers following Bill Gross' departure, the fund made a sizable reduction to leverage, and the author said a dividend cut would be a must. The fund is lower by about 30% since.
- Two other Pimco CEFs hiked payouts this month, the Pimco Dynamic Income Fund (PDI -0.1%) boosted by a penny to $0.22, and the Pimco Dynamic Credit Income Fund (PCI +1.5%) by just under a penny to $0.164.
May 8, 2015, 12:11 PM
- "We know it was a David and Goliath contest," says Ironsides Partners' Robert Knapp. "The important thing is that we woke up Pimco."
- Ironsides' slate of directors got just 13% the of votes in a proxy contest at Pimco Dynamic Credit Income Fund (PCI -0.1%). "The discount is too wide, the performance mediocre, but it hasn't been dreadful," says Knapp, who intends to stay invested in the fund. "It’s not a terrible investment to continue owning, and if they can’t sort things out, we’ll be here next year.”
- At last check, the 8.95% yielder trades at a 9% discount to net asset value.
Sep. 26, 2014, 11:49 AM
- Pimco's closed-end funds and ETFs are plunging in the wake of Bill Gross' exit to Janus: PHK -8.7%, PGP -8.5%, PTY -6.2%, PCN -4.2%, RCS -4.3%, PFL -3.6%, PFN -2.7%, PKO -2.5%, PDI -2.2%, PCI -1.4%, BOND -0.2%.
- "A lot of people bought into Pimco because of Bill Gross, who was the face of the organization, and so they’re shooting first and asking questions later,” says Motley Fool Asset Management CIO Bill Mann. "Investing is a personal business, and the market is saying it trusted Bill Gross.”
- Meanwhile, headlines indicate Dan Ivascyn, Pimco's (OTCQX:AZSEY, OTCPK:ALIZF) deputy chief investment officer, will succeed Gross and take over portfolio management; WSJ had written earlier this week that Ivasycn already was growing in popularity among Pimco investors, who had been putting more money into his fund even as they were pulling it from Gross’ fund.
May 23, 2014, 4:14 PM
- Several weeks after Bill Gross purchased more of the Pimco Dynamic Income Fund (PDI) for his own account, its roughly 5% discount to NAV has disappeared.
- The same, however, isn't true for Pimco Dynamic Credit Income (PCI), though it's also managed by well-regarded Dan Ivascyn. One reason for caution might be the relative newness of the fund, writes Brendan Conway.
- In the meantime, two Pimco CEFs which are known for sporting towering premiums to NAV continue to do so, the Pimco Global StockPLUS & Income Fund (PGP) and the Pimco High Income Fund (PHK). Two other Pimco CEFs at discounts: Pimco Income Strategy Fund (PFL) and Pimco Income Strategy Fund II (PFN).
Apr. 5, 2014, 9:10 AM
- The average discount on close-end bond funds is a historically large 6.5%, writes Brendan Conway in Barron's, and the discount on the roughly dozen funds launched in the last year is even higher at 8.6%. Investors are likely correct in being wary of new products - especially at a time when interest rates look to be headed higher - but a couple of funds from the class of 2013 may be worth a look.
- "We like fear, and we like dislocations in the marketplace," says Patrick Galley, CIO of RiverNorth Capital Management. He's a buyer of Pimco Dynamic Credit Income Fund (PCI), managed by rising star Dan Ivascyn. PCI is up 2.6% YTD, but NAV is higher by 4%, and buyers get a discount to NAV of 8% and a distribution rate of greater than 8%.
- Galley isn't alone on this one. Boaz Weinstein's hedge fund has piled in as well, becoming PCI's largest single owner. Weinstein has bought major chunks of other funds as well, and Pine River Capital picked up a big slice of another of the class of 2013 - the DoubleLine Income Solutions Fund (DSL). The entry of hedge funds into the $250B closed-end arena - a market too small for most institutional investors - is another sign of bargains to be had.
- David Tepper of Tepper Capital Management (not that Tepper) has identified the "1,000 x 1,000" club - bond CEFs trading at discounts of 10% or more which have seen NAVs rise by 10% or more over the last year. One of the class of 2013 makes the list - the BlackRock Multi-Sector Income Trust Fund (BIT).
Feb. 27, 2014, 3:29 PM
- Typically dominated by individual investors seeking a yield, closed-end debt funds have become the latest hedge fund playground as they seek to profit from assets trading at their widest discounts to NAV since the financial crisis.
- Behind the discounts was last year's big jump in interest rates which sent the value of fixed-income assets way down. Too far down, say the hedge funds.
- Boaz Weinstein's Saba Fund (known among other things for landing the London Whale), has amassed $847.3M in publicly traded funds since beginning to buy last year. Pine River Capital has loaded up on nearly $160M worth.
- Among Weinstein's purchases are $75.7M of Pimco's Dynamic Credit Income Fund (PCI +1%) - making Saba the largest holder - $78.5M of BlackRock's Corporate High Yield Fund (HYT +0.3%), and $41.5M of BlackRock's Credit Allocation Income Trust (BTZ +0.6%).
- Also a large owner of PCI and HYT, Pine River has 1.4M shares of DoubleLine's Income Solutions Fund (DSL +1.6%).
- The magnitude of these purchases is unprecedented, says Warren Antler who specializes in CEF analysis at AST Fund Solutions.
Dec. 23, 2013, 10:01 AM
- The Pimco Corporate & Income Strategy Fund (PCN +2.3%), $0.95 per share from net long-term capital gain.
- The Pimco Corporate and Income Opportunity Fund (PTY +3.6%), $1.84 per share from net long-term capital gain.
- The Pimco Income Opportunity Fund (PKO +1.1%), $0.60 per share from net income.
- The PCM Fund (PCM +0.3%), $0.135 per share from net income.
- The Pimco Dynamic Income Fund (PDI +1.4%), $1.31 per share - $1.21 from net income, $0.05 from net short-term capital gain, and $0.05 from net long-term capital gain.
- The Pimco Dynamic Credit Income Fund (PCI +0.5%), $0.36 per share - $0.12 from net income and $0.24 from net short-term capital gain.
- The distributions will be payable on January 17 to holders of record on December 30. The ex-dividend date is December 26.
Oct. 17, 2013, 12:17 PM
- I see no reason for long-term rates to head higher, says Jeff Gundlach, appearing on CNBC. He doesn't see the taper coming soon - incomes are falling, the labor force participation rate is stuck, and inflation is non-existent. Further, why would Janet Yellen take the Fed helm and immediately begin to reverse a policy she's so supportive of?
- Without the taper, he notes, QE is actually expanding on a relative basis thanks to a smaller budget deficit and less Treasury issuance needing to be mopped up by the central bank.
- The best opportunity in fixed income continues to be closed-end funds trading at discounts to net asset value (his DBL being one of them). You can put together a basket of these, he says, yielding 8-9% and with a discount to NAV of 10%. Others possibilities (though we haven't checked their prices vs. NAV): PDI, PTY, PCI, PHK, PKO, PCN, PCI, PFN, PFL.
- Treasurys continue their big rally, the yield on the 10-year now all the way down to 2.60%. TLT +0.8%, TBT -1.6%.
- Turning to stocks: I don't like $300B market cap companies trading at 20x forward earnings, he says, suggesting GOOG be "harvested" for gains.
- On TSLA: There's something wrong with this picture, he says, noting the company's $23B valuation while GM and Ford are hitting new highs. These massive Tesla sales being priced into the stock have to come from somewhere.
Sep. 13, 2013, 3:45 AM
- Pimco and BlackRock (BLK) reportedly scooped up over 25% of Verizon's (VZ) mammoth $49B bond sale on Wednesday, helping the telecom carrier to raise all the money it wanted to at once rather than in chunks, as it had originally intended.
- Bill Gross' firm bought $8B in bonds and BlackRock $5B, with the two companies also influential in persuading Verizon to price the debt at an above-market rate.
- Pimco funds: PCI, PTY, PDI, PHK, BOND, PKO, PCN, PCI, PFN
Sep. 12, 2013, 11:21 AM
- That bond funds - specifically Pimco bond funds - have tumbled in value as rates flew higher this summer isn't news. Instead, it's the vanishing "Pimco premium" in the firm's closed-end offerings.
- The Dynamic Credit Income Fund (PCI +0.9%) is off nearly 18% since its launch earlier this year as an initial premium of 9% is now a 9% discount. Others include PDI now at a 8.2% discount vs. a previous average of -2.4%.
- Others still trade at premiums, but of vastly smaller size. PTY is at 6.6% premium vs. a 3-year average of 17.8%. PHK remains at a whopping 50.7% premium, but down from 75% last year.
- "Was (it) the epoch that made the man as opposed to the man that made the epoch," wrote Bill Gross (BOND), wondering if his success was the result of being in the right place at the right time (the 30-year bond bull market).
- Others of note: PKO, PCN, PCI, PFN.
Aug. 13, 2013, 12:44 PM
- Tumbling Treasury prices - with TLT carving out a new 52-week low today - are again hitting income favorites.
- Leading mREITs (REM -1.4%) lower are Invesco (IVR -3.3%), Annaly (NLY -2.3%), American Capital (AGNC -2%), and Western Asset (WMC -1.6%).
- A number of income CEFs not long ago were so much in favor they commanded large premiums to NAV. They're now at seemingly growing-by-the-day discounts. Among the movers today is the Pimco Dynamic Income Fund (PDI -1.4%) selling for $27.45 against yesterday's closing NAV of $30.23. Others include: PCI, PFN, and PFL.
- Still trading at premiums to NAV are the Pimco High Income Fund (PHK -0.9%) and the Pimco Corporate & Income Fund (PTY -1.1%).
- Municipals (MUB -0.6%) slip as well, hitting Muni CEFs: NXZ -0.9%, IIM -1.2%, VKQ -0.7%.
- Related ETFs: MORT, MORL, SUB, MUNI, PVI, PZA, SHM, TFI, VRD, HYD, ITM, MLN, PRB, SMB, GMMB, SMMU, RVNU, NY .
Aug. 6, 2013, 12:30 PM
- With equity guys greedy and fixed income fans fearful, maybe it's time to go the other way.
- Portfolio manager David Tepper (not that David Tepper), finds 10 closed-end bond funds who have negative YTD and Y/Y returns even as their net asset values have risen over the same periods: TAI, HIX, HHY, HIO, FTF, HAV, HIH, PIM, PPT, FMY.
- Several other closed-end funds run by high-profile names used to command hefty premiums, but now trade at discounts to net asset value. Among them are Jeff Gundlach's DBL and DSL and Pimco's PCI, PDI, PFN, and PFL.
The Fund seeks current income with capital appreciation through investing in multiple fixed-income sectors in the global credit markets, including corporate debt, mortgage-related and other asset-backed securities. The Fund will normally invest at least 50
Industry: Closed-End Fund - Debt
Country: United States