PIMCO California Municipal Income F... (PZC)

PZC is similar to other PIMCO muni CEFs in that it has had a volatile few months. This comes on the backdrop of higher interest rates and a distribution cut. With this backdrop, I believe the worst of...

PIMCO finally did it. They chopped the muni CEF distribution by up to 45%. PCQ was the biggest risk as it was trading at a ridiculous 45% premium to NAV going into the cut.

PIMCO California muni funds teach a lesson on CEF valuation. The most expensive fund declined by the most after the cut.

22 out of 23 CEF sectors positive on price and 22 out of 23 sectors positive on NAV last week. All sectors were positive last week.

12 out of 23 CEF sectors positive on price and 6 out of 23 sectors positive on NAV last week. Tortoise offer tender results.

We review CEF market valuation and performance through the second week of December and highlight recent market action.

Steadily lower yields and heightened volatility make relative value opportunities an attractive alpha generation strategy in CEFs.

The disparity among PIMCO tax-exempt muni CEFs remains large. Apart from lower income yields, greater susceptibility to distribution cuts and larger drawdown potential, the ongoing consolidation wave ...