PIMCO January Update | Coverage Drops But That's Not The Concern

Summary

• Coverage fell for the third straight month stoking fears of a large distribution cut similar to what we saw in January from the muni CEFS.

• The taxable coverage ratios are down simply due to the drop in the dollar relative to the euro and pound and possibly due the initiation of non-zero swaps.

• NAVs have been much strong as of late helping to allay …