PIMCO Access Income Fund

The current macroeconomic environment, with ongoing rate cuts and a pro-growth administration, is favorable for fixed-income markets, making PAXS a strong income investment. PAXS has generated a total return of 11.91% since March, with 9.07% from distributions, despite a modest share price appreciation. Risks include potential changes in the Fed's rate policy and the possibility that PAXS may not maintain its current distribution level.

PAXS: Yields Over 11% And Looks More Enticing As Rates Decline

Immediately after President-Elect Donald Trump won his second term last week, the US dollar surged, while US Treasuries fell.

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Advent Convertible and Income Fund

Gabelli Utility Trust

I can't tell you how many times I've mentioned closed-end funds (CEFs) to investors and been met with blank stares in return.

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Pimco California Municipal Income Fund II

PCM Fund

PIMCO Corporate & Income Strategy Fund

Pimco California Municipal Income Fund

PIMCO Dynamic Income Fund

PIMCO Dynamic Income Opportunities Fund

PIMCO Dynamic Income Strategy Fund

PIMCO Income Strategy Fund

PIMCO Income Strategy Fund II

Pimco Global Stockplus & Income Fund

Pimco High Income Fund

Pimco Municipal Income Fund

Pimco Municipal Income Fund II

Pimco Municipal Income Fund III

Pimco New York Municipal Income Fund

Pimco New York Municipal Income Fund II

PIMCO Corporate & Income Opportunity Fund

Pimco New York Municipal Income Fund III

Pimco California Municipal Income Fund III

PIMCO Strategic Income Fund Inc

NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below. The distributions are payable on December 2, 2024 to shareholders of record on November 12, 2024, with an ex-dividend date of November 12, 2024.

PIMCO Closed-End Funds Declare Monthly Common Share Distributions

First Trust Senior Floating Rate Income Fund II

Blackrock Floating Rate Income Strategies Fund Inc

Nuveen Floating Rate Income Fund

PennantPark Investment

Prospect Capital

RiverNorth Opportunities Fund, Inc.

Western Asset Diversified Income Fund

XAI Octagon Floating Rate & Alternative Income Term Trust

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The best taxable closed-end funds are PHK, PFN, and at slightly cheaper valuations, PDI and PCN; best munis are PMF, NY funds, and PCK in CA. Distributions are safe due to funds monetizing premiums via at-the-market offerings, supplementing net investment income. Coverage ratios for muni CEFs may be overstated; future UNII reports will clarify the impact of new leverage costs.

PIMCO Update | Sept 2024 | Muni Coverage Jumps (Maybe), Taxables See Significant ATM Benefit

The PIMCO Access Income Fund offers a high yield of 11.24%, appealing to income-focused investors despite its high leverage and current premium valuation. The fund primarily invests in fixed-income securities, benefiting from recent interest rate cuts, but faces limited upside due to already priced-in rate cuts. Despite a modest share price increase, the fund's total return of 3.57% over the past two-and-a-half months is competitive, especially considering its high yield.

PAXS: Analyzing Recent Changes For This Highly Levered Bond Fund

Calamos Dynamic Convertible & Income Fund

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PIMCO Access Income Fund is a closed-end fund for income-focused investors, primarily investing in fixed-income securities like bonds for higher yields. Bonds lack protection against inflation, affecting purchasing power, but the PAXS closed-end fund outperforms U.S. Treasury securities with an 11.33% distribution yield. The fund employs leverage, has consistent distributions, and trades at a 5.31% premium to net asset value, making a "hold" rating appropriate.

PAXS: Price Outperforming The Portfolio Makes This Riskier Than Many Believe

Coverage on PIMCO CEFs improved, with muni CEF coverage ratio up 9 points to 89% and taxable CEFs up over 20 points to 84.6%. Leverage changes varied among funds, with some cutting borrowing significantly while others increased leverage. NAVs for PIMCO CEFs showed positive trends, with some funds performing better over the past year than others.

PIMCO Update May 2024 - PDX Levers Up

We take a look at coverage, leverage, and performance metrics of the PIMCO CEF suite. Taxable and Muni PIMCO CEF coverage diverge further in March, with average taxable coverage at new lows over the last 12 months. Leverage levels across the PIMCO taxable suite remain subdued, reflecting the lack of compelling opportunities in the credit market.

PIMCO CEF Update: Income Volatility And Yield Curve Risk

Western Asset High Income Fund

Lufax Holding

Runway Growth Finance Corp

Saratoga Investment

According to a February 2, 2024 article in The Washington Post, grocery prices have jumped 25% since Joe Biden took office. This outpaced overall inflation, which was 19% in the same time period. The price of beef and baby food soared the most, followed by sugar and citrus fruits.

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PIMCO's closed end fund lineup continues to grow, launching new funds periodically. Positive economic indicators, such as easing inflation, have shifted sentiment towards a lower interest rate scenario. PIMCO's newest closed end fund, PAXS, has performed well compared to other funds in the lineup, but still trails the largest funds from PIMCO.

PAXS: PIMCO's Newest Closed End Fund Continues To Deliver

Funds rely on at-the-market offerings and capital gains to make up for earnings shortfalls and maintain distributions. Coverage levels for taxable funds declined in January due to the falling value of the dollar. Net investment income production has been declining for several years, leading to potential distribution cuts and overvalued NAVs.

PIMCO Update Feb 2024 | PDX Makes The Move, Valuations Remain Rich

Coverage for PIMCO CEFs has improved for muni funds but fell slightly for taxable funds.

PIMCO CEF Update: Performance Reversal And New Swap Shenanigans

PIMCO Access Income Fund has experienced a flat performance over the past year, but has continuously generated monthly income. The fund's performance is dependent on the macroeconomic environment and the Fed's interest rate decisions. I am becoming more bullish on PAXS, anticipating potential capital appreciation and ongoing income generation in a rate-cutting environment.

PAXS: 10.71% Yielding CEF From PIMCO Could Thrive In A Lower Rate Environment

NEW YORK, March 01, 2024 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below. The distributions are payable on April 1, 2024 to shareholders of record on March 11, 2024, with an ex-dividend date of March 8, 2024.

Pimco Closed-End Funds Declare Monthly Common Share Distributions

Aberdeen Income Credit Strategies Fund

KKR Income Opportunities Fund

We provide an update for the PIMCO CEF suite. Coverage for PIMCO CEFs saw marginal declines for Muni funds and remained nearly flat for taxable funds. Borrowing and leverage levels remained fairly steady.

PIMCO CEF Update: PIMCO Struggled To Outperform Last Year

PAXS is a relatively recently established PIMCO CEF trading ~25% below its IPO NAV level of $20 per share. Yet, it has the healthiest dividend coverage levels among PIMCO taxable CEFs and has managed to accommodate the dividend without relying on trimming the NAV base. In this article, I elaborate on several aspects that distinguish PAXS and render the investment case attractive for yield-chasing investors.

PAXS: Major Reversal Expected In This 12% Yielder From PIMCO

SPDR Bloomberg High Yield Bond ETF

We provide a November update for the PIMCO CEF taxable suite. Coverage across PIMCO's tax-exempt funds increased slightly in November, while coverage for taxable funds decreased by around 10% on average. PIMCO appears to have taken advantage of the swoon in credit prices in September and October.

PIMCO CEF Update: PIMCO Trades The October Swoon

PIMCO Access Income Fund offers a current yield of 12.71% and trades at a discount on net asset value. The PAXS closed-end fund's performance over the past five months has been worse than expected due to changing market sentiment and rising interest rates. The market may be overpricing bonds, as the December FOMC meeting did not suggest interest rate cuts of the magnitude currently priced into the market.

PAXS: Continuing Failure To Cover The Distribution

BlackRock Taxable Municipal Bond Trust

BlackRock Enhanced Equity Dividend Trust

BlackRock Floating Rate Income Trust

Morgan Stanley China A Share Fund Inc

Blackrock Debt Strategies Fund Inc

Eaton Vance Municipal Income 2028 Term Trust

First Trust Mortgage Income Fund

Templeton Global Income Fund

Western Asset High Yield Defined Opportunity Fund Inc

Western Asset Investment Grade Defined Opportunity Trust

Nuveen Mortgage Opportunity Term Fund

Deutsche Municipal Income Trust

Morgan Stanley Emerging Markets Debt Fund

Nuveen Municipal Credit Opportunities Fund

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

Putnam High Income Securities Fund

Franklin Templeton Emerging Markets Income Fund

Stocks were up slightly as the jobs report shifted the narrative towards 'higher for longer.' The payroll report came in stronger than expected, but the narrative was that it was a hawkish report, meaning higher rates for longer. Discounts for CEFs continue to tread water, with real estate and interest rate-sensitive bond sectors performing well, while emerging market equity and convertibles performed poorly.

CEF Weekly Commentary | December 10, 2023 | High Quality Opportunities

We provide an update for the PIMCO CEF suite. PIMCO took advantage of the recent back-up in yields and yield curve disinversion to add assets across the taxable suite. Muni CEF coverage continues to decrease, while taxable CEF coverage slightly improved.

PIMCO CEF Update: Getting Ready For PDX

BlackRock Innovation & Growth Trust

BlackRock 2037 Municipal Target Term Trust

Blackrock ESG Capital Allocation Trust

Guggenheim Active Allocation Fund

MainStay CBRE Global Infrastructure Megatrends Fund

Pioneer Municipal High Income Opportunities Fund

Neuberger Berman Next Generation Connectivity Fund

Nuveen Core Plus Impact Fund

Nuveen Variable Rate Preferred & Income Fund

RiverNorth Flexible Mncpl Inm Fnd II Inc

Thornburg Income Builder Opportunities Trust

In 2021, a dozen closed-end funds, or CEFs, were launched, but none of them performed well, with all of them experiencing negative total returns since inception. The CEFs trade at wide discounts to NAV, with an average discount of -12.5%, and offer high yield income with annual yields as high as 12.9%. The hybrid funds with global allocations and higher yielding taxable fixed income funds have performed better than municipal fixed income funds and equity funds.

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Traditional retirement portfolio strategies of a 60/40 mix of stocks and bonds are being challenged due to poor bond market performance. Bond funds are on track for a third consecutive year of losses, which has not happened since the 1970s. PIMCO Access Income Fund is recommended as a good investment option due to its high UNII coverage, discount to NAV, and attractive yield.

News for PIMCO Access Income Fund ETF (PAXS)