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Pimco Municipal Income Fund II Message Board

  • mgb45 mgb45 Aug 22, 2010 7:53 PM Flag

    NAV = 11.06

    Looks good, The NAV hasn't been this high since early October 2008.

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    • my information tells me the NAV is 9.98 thats a long way from 11.06

      • 1 Reply to wirtz24184
      • Your information is right on. NAV has had a huge drop since the first post of this message. The value of muni's is taking a huge hit and the bottom is not in sight as far as I can tell.

        The 'returns' of the actual muni bonds which are approaching the fantastic, have not been impacted but our entry price & distribution yields will probably be better as this continues.

        The flow of funds out of muni's has caused redemptions in the open funds and in direct sells of muni's forcing prices lower. CEF prices have not stayed insync with many still at premiums to NAV.

        Am watching for TBill rates to stabilize within some tighter range before entry.

    • how low is this fund going to go????

      • 1 Reply to wirtz24184
      • Ah, great question and I have no idea. It's way beyond my limited knowledge.

        Lot's of "worry" articles on the web these days. The mini-panic of mid November lowered buying pressure and we do have a lot of unanswered issues about Fed programs.

        Eaton Vance company web site has some articles that make sense (to me). Their "Insights" URL is at

        Read the Eaton Vance Market Insight of November 2010: "Willful or Wary? Why Recent Volatility May Spell a Buying Opportunity for Municipal Investors."

        Also, in general muni CEFs tend to be sensitive to the long bond (30yr TBill) since the durations of their holdings also tend to be longer. I've seen estimates for individual munis that a 0.40% increase in the 30yr caused an avg 6% decrease in price (a Morningstar estimate). Have not attempted that calculation myself for the multiple holdings of a muni CEF so just throwing it out.

        The same article mentioned that some added price movement from investor worries about state & local gov't stability should be expected. Volatility may be with us for a while but my own bet is that interest rates will stay low for most of 2011.

    • Does anyone know if PML has exposure to the alt min tax? In the annual report of 31 May 10, the report states that this fund is 97.50% free from AMT. I take that to mean that us share holders will have to make out AMT forms. Am I wrong? If you have the annual report, see page 45. Does anyone out there have ever made out AMT forms?

      • 1 Reply to cryptomeria12
      • The fund companies will send 1099's with details. Doubt that they would send you the filing form. If you need it then you can download from the irs just like your 1040 form and publication.

        Am using a tax software package that automatically detects the need for AMT calculations and prints out or electronically transfers the appropriate forms.

        Your 1040 publication has a calculation that tells you if you need file using the AMT. Also there is some sort of web based AMT assistant on the IRS web site,

        Many PIMCO muni funds try to be AMT free and 97.5% is darn close.

        The fact that a portion is subject to add back for AMT does not mean that you will automatically have to use the AMT tax table.

        I've only fallen into it once and that was when cashing out employee stock options.

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