CEF Holdings Reports

[mnfish]

Does anyone ever look at these? Pimco has a spreadsheet you can download and play with and I did that with PDO recently for the most recent one dated 3/31/2023. 

Some interesting (to me) information after using some Excel features and questions from a simpleton in regard to the numbers.

Is it unusual or a concern for a CEF to owe $3,462M more than the value of some of their investments?
If the average coupon rate for some of the largest portions of their holdings is 6.2% how do they pay 12% to an investor for an extended period of time?
I'm sure I'm missing something, as these are much more complicated than I can comprehend, and feel free to school me.

Investments in Securities                                               Non-Agency Mortgage Backed Securities         
Loan Participants and Assignments                                     % of Net Assets     53.3%

% of Net Assets   40.3%                                                 Avg Coupon Rate      5.9%
Avg Coupon Rate  8.2%                                                  Amount Owed         $2,132M
Amount Owed    $687M                                                    Value                      $765M
Value                $578M                                                   Difference               ($1,367M)
Difference         ($108M)

Corporate Bonds and Notes                                            Asset-Backed Securities
Banking and Finance                                                      % of Net Assets     21.9%   
% of Net Assets    13%                                                  Avg Coupon Rate    4.1%
Avg Coupon Rate   6.6%                                                Amount Owed     $1,878M
Amount Owed    $235M                                                  Value                   $314M
Value               $190M                                                   Difference           ($1,564)
Difference        ($45M)

Industrials                                                                    Reverse Repurchase Agreements
% of Net Assets    20.4%                                               % of Net Assets     (88.5%)
Avg Coupon Rate    7.2%                                               Avg Coupon Rate    5.3%
Amount Owed     $671M                                                 Amount Owed      ($1,249M)
Value               $293M                                                   Value                   ($1,270M)
Difference         ($378M)                                                Difference             ($20M)

[Fearchar]

mnfish,

I have spent a fair amount of time reviewing and monitoring PIMCO CEFs.
They use a number of rather exotic financial instruments for leverage.
Ostensibly this is to save costs compared to traditional leverage costs.
However, it's difficult to know how much they are saving.

Anyhow, currently the index (BAMLH0A0HYM2EY) of high yield bonds is about 8.42%.
PDO is yielding 11.90% at the share price.
NAV and the closing prince are nearly the same.

Higher yields in general correlate with higher risks.

When I consider how expensive conventional leverage is right now, my impression is that CEFs must be carrying far more risk that what I'm comfortable with.

[steelpony10]

         PIMCO, being royalty of the CEF niche, probably gets the best borrowing deals. I still think PIMCO premiums are from attracting investors that recognize this plus their financial expertise. Everybody is making money with the least risk in this area.

          If a Buffet type invested in CEF’s where do you think he’d land?

[retiredat48]

mnfish , I can't spend time digging, buy perhaps you are misinterpreting things. Take the second item, Corp Bonds/Notes. ...to me the amount owed, $235 million, is the face amount of the bonds PIMCO holds...it is owed to PIMCO. The "value" of $190 million is the mark-to-market current value of these bonds.

That is, PIMCO has current market losses of $45 million, which are already reflected in the fund nav price. At maturity of bonds, PIMCO will get this back if held to maturity, barring defaults.

For any bond fund, the "average weighted price" is a key parameter. It shows the current mark-to-market value of bonds versus their face value, par being 100. So if M* info says a bond fund is at 88% weighted price (to par), this means a built in capital gain for bonds if held to maturity.

Caution...I could be wrong in PIMCO data presentation here!

R48