PAXS: Price Outperforming The Portfolio Makes This Riskier Than Many Believe
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.
PIMCO Update May 2024 - PDX Levers Up
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.
