If you are familiar with PIMCO Bond Funds, you know (1) they are popular for providing big monthly income payements to investors, but (2) Few people actually want to know “How the sausage is made.” Here is a quick question from a member about “Return of Capital” (“ROC”) on PIMCO’s 11.5% yield PAXS, followed by a reply from me. Hopefully, it’s a helpful piece of info for you to “stir into the pot” as you manage your investments:
Dear Mark,
I have read your comments on PIMCO’s return of capital with some of it’s funds. Question: Does PIMCO use return of capital with PAXS?
And a reply from me:
I don't think they have yet. PAXS is so new that it doesn't have the legacy interest rate (and interest rate swap/derivatives) problems of some of the older funds. This is one of the reasons why I like PAXS.
Member Reply:
Thanks Mark. It is a pleasure dealing with you!!
We are currently invested heavily in PAXS within our Blue Harbinger “High Income NOW” portfolio. And you can read our previous writeups on PAXS and other PIMCO Bond Funds here and here.