PIMCO STRAT.INCOME DL-,01

RCS and PCM recently announced distribution cuts, and they were simultaneously trading at some hefty premiums to their NAV per share. We saw the usual outcome, which is a drastic sell-off as is often the case with the dangerous combination of elevated NAV distribution rates and premiums are mixed. We are looking at two more names to warn about in the future, but predicting distribution cuts is incredibly difficult as funds can pay out what they'd like.» Mehr auf seekingalpha.com

PIMCO Strategic Income Fund trades at an 80% premium to NAV, raising concerns about its sustainability and value for investors. The RCS closed-end fund's high distribution yield of 7.6% is achieved by depleting NAV, not from portfolio returns, indicating an unsustainable model. Replicating RCS's portfolio using ETFs or direct investments yields significantly lower returns, highlighting the fund's unrealistic distribution rates.» Mehr auf seekingalpha.com

The PIMCO Strategic Income Fund offers a 7.80% yield, higher than indices but lower than some peers, making it appealing yet not outstanding for income-focused investors. The fund's shares have surged 31.49% since last year, outperforming bond indices and common stocks, but this could indicate overvaluation. Bond prices have been falling ever since the Fed started cutting rates, which could very easily apply downward pressure on the fund's share price and NAV.» Mehr auf seekingalpha.com