PIMCO Update | Starting To Get Nervous And Take Action

Summary

• The most recent UNII report showed continued deterioration in the coverage ratios and UNII values of the taxable funds.

• Coverage ratios were weaker on the taxable side in part because of a weaker dollar relative to the pound.  Muni CEF coverage remains very strong.

• I am concerned about the combination of lower coverage, lower UNII, and weaker NAVs …