PCM: Buying After Distribution Cuts Should Be Done Carefully
PCM
seekingalpha.comJanuary 6, 2025
The PCM Fund aims for high current income by investing in agency-backed MBS, non-agency MBS, investment-grade and high-yield corporate debt, and commercial mortgage-backed securities. Historically, I avoided leveraged CEFs like PCM due to the unfavorable risk-reward profile during the Fed's rate hikes and yield curve inversion. My caution was justified as PCM's returns have been flat over the past 2.5 years, under-performing other risk assets.