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PIMCO Corporate and Income Opportunity Fund (NYSE:PTY) is a closed end fund that is managed by PIMCO. The primary focus of PTY is delivering high and stable current income streams, while preserving the value of the
PTY: 10% Yielding CEF That Needs To Be In Your Portfolio
Summary
- PTY did not respond to the initial tariff-shock well. It declined by ~12%.
- Yet, the Fund has largely recovered, in line with the high-yield credit spreads. Importantly, the distributions have remained stable.
- Currently, PTY operates with ultra-conservative leverage.
- Even with so much defensive leverage, the distributions are well-covered.
- In this article, I discuss in more details why I have become bullish on PTY.
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.
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