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Participant ○○○

PIMCO May earnings

image.pngThe May earnings report is here. Earnings for the month improved for PDI, PCI PFN, and PKO. All 4 earned more in the month than they distributed. UNII improved. PKO had the largest relative improvement. Among those I pay attention to, only RCS under-earned this month: earning 0.05 vs 0.051 distribution, so very close...

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Explorer ○

Re: PIMCO May earnings

Thank you for posting

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Participant ○○○

Re: PIMCO May earnings

FWIW, The three on the bottom recently had their distribution cut. 

While the three on the top are three of the more popular CEFs from PIMCO.

So there's food for thought for camps that think no cut is coming and for those who think a cut will occur. 

Given the 3 and 6 month performance for the ones that just got cut last month, I can see why they were cut, and can also see why PDI PCI and PTY won't be cut in July. 

GLTA

Fund NameTickerCurrent Fiscal
Year End
Estimated Net Investment Income (NII)(1)
Fiscal Year
to Date
Estimated Undistributed
Net Investment
Income -
UNII/Estimated (ROC)(1)
Monthly Distribution
per Common
Share(2)
 3 Month Rolling Coverage Ratio(3)6 Month Rolling Coverage
Ratio (3)
Fiscal Year
to Date Distribution Coverage
Ratio(4)
PIMCO Corporate & Income Opportunity FundPTY31-Jul-20$1.02($0.15)$0.13000070.18%77.02%79.85%
PIMCO Dynamic Credit & Mortgage Income FundPCI30-Jun-20$1.64($0.25)$0.17400073.38%79.68%88.35%
PIMCO Dynamic Income FundPDI30-Jun-20$2.44$0.06$0.22050073.70%84.13%105.23%
PIMCO High Income FundPHK31-Jul-20$0.46($0.16)$0.06133160.74%79.84%74.51%
PIMCO Strategic Income Fund, Inc.(5)RCS30-Jun-20$0.52($0.15)$0.06120035.03%63.82%77.32%
PIMCO Global StocksPLUS® & Income FundPGP30-Jun-20$0.80($0.23)$0.09394026.90%54.50%77.52%
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Contributor ○○○

Re: PIMCO May earnings


@astrokng wrote:

FWIW, The three on the bottom recently had their distribution cut. 

While the three on the top are three of the more popular CEFs from PIMCO.

So there's food for thought for camps that think no cut is coming and for those who think a cut will occur. 

Given the 3 and 6 month performance for the ones that just got cut last month, I can see why they were cut, and can also see why PDI PCI and PTY won't be cut in July. 

GLTA

Fund NameTickerCurrent Fiscal
Year End
Estimated Net Investment Income (NII)(1)
Fiscal Year
to Date
Estimated Undistributed
Net Investment
Income -
UNII/Estimated (ROC)(1)
Monthly Distribution
per Common
Share(2)
 3 Month Rolling Coverage Ratio(3)6 Month Rolling Coverage
Ratio (3)
Fiscal Year
to Date Distribution Coverage
Ratio(4)
PIMCO Corporate & Income Opportunity FundPTY31-Jul-20$1.02($0.15)$0.13000070.18%77.02%79.85%
PIMCO Dynamic Credit & Mortgage Income FundPCI30-Jun-20$1.64($0.25)$0.17400073.38%79.68%88.35%
PIMCO Dynamic Income FundPDI30-Jun-20$2.44$0.06$0.22050073.70%84.13%105.23%
PIMCO High Income FundPHK31-Jul-20$0.46($0.16)$0.06133160.74%79.84%74.51%
PIMCO Strategic Income Fund, Inc.(5)RCS30-Jun-20$0.52($0.15)$0.06120035.03%63.82%77.32%
PIMCO Global StocksPLUS® & Income FundPGP30-Jun-20$0.80($0.23)$0.09394026.90%54.50%77.52%

Based on the past numbers posted on NII and UNII on PCI in March and June (now in this post), the distribution of PCI is not sustainable unless PIMCO may have made adjustments to improve NII. The problem is that no one knows what the PIMCO managers have already done or what adjustments are on the pipeline. People have predicted before to find out later that they were wrong. For example, during the Argentine crisis of last August, people predicted bad things for PCI, and it went on a discount. That when I bought about 6-7k shares but both NAV and price kept going up steadily. Obviously, who sold PCI at that time may have lost some cash. So, I am not going to predict anything at this point.

Indeed, PCI cash flow has been negative in the past 10 weeks or so. It seems that several people buy and then sell for a small profit because the cash flow index is swinging in a range with no large swings.

Any way, that is my two cents.

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Participant ○○○

Re: PIMCO May earnings

Keppelbay: "The May earnings report is here. Earnings for the month improved for PDI, PCI PFN, and PKO. All 4 earned more in the month than they distributed. "

PCN which has the lowest distribution yield among the PIMCO multi-sector CEFs has never lowered its distribution amount since its inception in 2002.

I am interested in PFN stats.  It shows 81% distribution coverage for fiscal year to date.  Only PTY has a lower coverage ratio.  Why is such a low coverage ratio for PFN not concerning?   The comforting thought about PFN for me is that it has the largest gain (15+%) in NAV (among PIMCO multi) since March 23rd low but should the fiscal year to date low coverage ratio give us a pause?

 

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Participant ○○○

Re: PIMCO May earnings


@Anitya wrote:

...I am interested in PFN stats.  It shows 81% distribution coverage for fiscal year to date.  Only PTY has a lower coverage ratio.  Why is such a low coverage ratio for PFN not concerning?   The comforting thought about PFN for me is that it has the largest gain (15+%) in NAV (among PIMCO multi) since March 23rd low but should the fiscal year to date low coverage ratio give us a pause?

 


I don't know if PIMCO will cut the PFN distribution in the near-term.  I will hazard a guess that it would have been done in June, along the other three, if a cut was imminent. That said, PFN issued a section 19 notice last month estimating about 5% of the May distro was ROC. This may be transient or may foretell a cut. The recent NAV gains are likely partial recovery from recent losses, rather than distributable cap gains. 

I've been monitoring UNII since 2014. RCS has has 3 extended negative UNII stretches, and has cut a few times. This is the first extended negative stretch for PFN. But I don't see UNII as a firm predictor, because PKO has had longish negative UNII patches and then shifted positive again. Therein lies 'magic'. PIMCO moves money back and forth between NII and swaps. I'm not skilled in the art, so I won't try to interpret the financials, except to say that the most recent available swap data is quite stale.

I agree that PFN bears watching.

The UNII chart is not updated for April/May, but the trend info is there. PFN in green. Y axis is UNII/monthly distribution so that funds can be compared for UNII magnitude change as well as trend.

temp.jpg

 

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Participant ○○○

Re: PIMCO May earnings

Thanks, Keppelbay, for the detailed response.

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Explorer ○○

Re: PIMCO May earnings

Without knowing what's in the Pimco black box, it's impossible to figure anything out.

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