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PCI I'm going to revisit PCI instead of preferreds. The only caveat is the very high expense ratio: (but explained nicely in this Kiplinger's article: 1/14/20 Market value: $3.2 billion Distribution rate: 8.3% Expenses: 4.63%* PCI, $25.27) is a perpetually misunderstood CEF. It's frequently maligned for both its high fees (which top 4% once you include interest expenses) and its portfolio. You see, PCI holds mostly mortgage-backed securities, the infamous villain of the Great Recession and The Big Short." style="font-family: Helvetica; font-size: 14px; font-weight: 700; background-color: #ffffff; line-height: normal !important;">Pimco Dynamic Credit Income Fund (PCI, $25.27) is a perpetually misunderstood CEF. It's frequently maligned for both its high fees (which top 4% once you include interest expenses) and its portfolio. You see, PCI holds mostly mortgage-backed securities, the infamous villain of the Great Recession and The Big Short. But the hard numbers indicate that this derision is unfair. MBB). It's also better than high-yielding fixed-income products such as the SPDR Bloomberg Barclays High Yield Bond ETF (For one, PCI's 111% total return since 2013 inception is far better than the 18% from the indexed iShares MBS ETF (MBB). It's also better than high-yielding fixed-income products such as the SPDR Bloomberg Barclays High Yield Bond ETF (JNK): a standard in junk bonds. Dynamic Credit Income's 8.3% distribution is compelling, too - even more so when you consider that it has increased a couple times since inception. An additional income bonus: PCI has paid a special dividend in every year of its history except 2017, which means investors sometimes receive a double-digit annual income stream from this fund. |
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Msg # | Subject | Author | Recs | Date Posted |
23259 | Re: PCI | keebon | 3 | 1/22/2020 5:26:28 PM |
23260 | Re: PCI | Jerseyvinny | 1 | 1/22/2020 6:34:16 PM |