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Contributor ○○○

PDI at much larger premium PCI

The premia of PDI and PCI are 19.70% and 3.92% as of 3/26. CEF Connect says their 52-week average premia were 16.84% and 5.85%. The NAV returns have similar in recent years. I wonder why the difference in premia is so large and has increased over the last few days.

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Follower ○○

Re: PDI at much larger premium PCI

Perhaps because last Pimco report shows PDI covering dividend better than PCI. PDI has positive undistributed earns, PCI is negative.  Wouldn't surprise me if next month it reverses.

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Frequent Contributor

Re: PDI at much larger premium PCI


@brevard76 wrote:

Perhaps because last Pimco report shows PDI covering dividend better than PCI. PDI has positive undistributed earns, PCI is negative.  Wouldn't surprise me if next month it reverses.


+1

Also, has not PDI distributed a relatively (larger percent) special dividend in Dec each year.

R48

 

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Explorer ○○

Re: PDI at much larger premium PCI

I find it hard to believe that the variance in valuations has to do with the UNII report or historical specials.  In my mind it is likely just inefficiency in the markets.  Eventually, the difference in distribution rates will narrow - either by PCI becoming richer or PDI falling back.  I did swap a little PDI for PCI.

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Frequent Contributor

Re: PDI at much larger premium PCI


@Beliavsky wrote:

The premia of PDI and PCI are 19.70% and 3.92%. CEF Connect says their 52-week average premia were 16.84% and 5.85%. The NAV returns have similar in recent years. I wonder why the difference in premia is so large and has increased over the last few days.


Forget about premium/discount behavior over the last month.  That's determined by what the largely panic driven retail investors have done to ALL markets, not by any rational or efficient behavior.  Both NAVs have tanked about 30% this month.  Ditto for share prices.   This tightly wound spring will eventually stop vibrating!  8-)

 

ElLobo, de la casa de la toro caca grande
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Contributor ○○○

Re: PDI at much larger premium PCI


@Beliavsky wrote:

The premia of PDI and PCI are 19.70% and 3.92% as of 3/26. CEF Connect says their 52-week average premia were 16.84% and 5.85%. The NAV returns have similar in recent years. I wonder why the difference in premia is so large and has increased over the last few days.


The correct numbers for the premia of PDI and PCI as of 3/26 are 16.26% and 1.25%.

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Explorer ○○

Re: PDI at much larger premium PCI

I think they posted before CEFconnect adjusted for the NAV moves of the day.  

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