UPDATE: Unbeknownst to many investors, PIMCO’s big-yield funds, PDI and PTY, are including a significant return of capital in their beloved big distributions (and it’s largely hidden through derivative swaps transactions). We reached out to PIMCO for comment, and found their replies (included in this report) concerning. These two big-yield PIMCO funds are simply not as good as many investors believe. Caveat emptor.