PIMCO Access Income Fund (PAXS) Stock

The current macroeconomic environment, with ongoing rate cuts and a pro-growth administration, is favorable for fixed-income markets, making PAXS a strong income investment. PAXS has generated a total return of 11.91% since March, with 9.07% from distributions, despite a modest share price appreciation. Risks include potential changes in the Fed's rate policy and the possibility that PAXS may not maintain its current distribution level.

Immediately after President-Elect Donald Trump won his second term last week, the US dollar surged, while US Treasuries fell.

The best taxable closed-end funds are PHK, PFN, and at slightly cheaper valuations, PDI and PCN; best munis are PMF, NY funds, and PCK in CA. Distributions are safe due to funds monetizing premiums via at-the-market offerings, supplementing net investment income. Coverage ratios for muni CEFs may be overstated; future UNII reports will clarify the impact of new leverage costs.

NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below. The distributions are payable on November 1, 2024 to shareholders of record on October 11, 2024, with an ex-dividend date of October 11, 2024.

The PIMCO Access Income Fund offers a high yield of 11.24%, appealing to income-focused investors despite its high leverage and current premium valuation. The fund primarily invests in fixed-income securities, benefiting from recent interest rate cuts, but faces limited upside due to already priced-in rate cuts. Despite a modest share price increase, the fund's total return of 3.57% over the past two-and-a-half months is competitive, especially considering its high yield.

PIMCO Access Income Fund is a closed-end fund for income-focused investors, primarily investing in fixed-income securities like bonds for higher yields. Bonds lack protection against inflation, affecting purchasing power, but the PAXS closed-end fund outperforms U.S. Treasury securities with an 11.33% distribution yield. The fund employs leverage, has consistent distributions, and trades at a 5.31% premium to net asset value, making a "hold" rating appropriate.

Coverage on PIMCO CEFs improved, with muni CEF coverage ratio up 9 points to 89% and taxable CEFs up over 20 points to 84.6%. Leverage changes varied among funds, with some cutting borrowing significantly while others increased leverage. NAVs for PIMCO CEFs showed positive trends, with some funds performing better over the past year than others.

NEW YORK, June 03, 2024 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below. The distributions are payable on July 1, 2024 to shareholders of record on June 13, 2024, with an ex-dividend date of June 13, 2024.

According to a February 2, 2024 article in The Washington Post, grocery prices have jumped 25% since Joe Biden took office. This outpaced overall inflation, which was 19% in the same time period. The price of beef and baby food soared the most, followed by sugar and citrus fruits.