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Pimco High Income Fund Pimco Hi Message Board

  • mcrmgg2004 mcrmgg2004 Dec 14, 2009 2:34 PM Flag

    semi annual report for phk

    anyone have the guts to analyze and justify this pewmium? looks like market got wind that cut in dividend is inevitable

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    • jdfunnell Dec 15, 2009 12:28 PM Flag

      You mean what they are paying on the ARPS? About 20 basis points..........Dave

    • There is no justification for this premium. Unfortunately, this is a very crowded short, so it costs about 17% to borrow.

      Longs are going to do poorly here when this thing mean reverts to a zero premium, shorts like me have done very poorly here and may not even do well if this thing gradually loses its premium, because of all the neg rebate they have to pay (it has nothing to do with the dividend). Shorting this thing has been like trying to win a war in Afghanistan.

      The only big winner on PHK is brokerages whose retail investor clients are long the name in a margin account. They collect that 17%.

      Since you will not be able to refute the substance of this e-mail, please feel free to bash me all you want. My results (as a whole, not just picking one of a thousand names I've been involved in) speak for themselves, and are readily in the public domain. You can say that white is black and black is white, but it doesn't make it true. In the end, results are results.

    • average junk coupon 8 per cent bonds selling at 80-90 of face value, yield can be stretched to 9-10 if bonds go to full value. leverage coming down quality going up on their portfolio i say 8c most can afford monthly. any agreement?

    • I can't justify the pewmium so I suggest you
      get back on your meds....

      Do you understand how this ETF works???

      Go back and get your GED then ask an intelligent question.

      At 9/30 what were the trading gains? Of course the interest income does not cover the dividend when you trade a fund as much as this one does.

      Ah why do I waste my time explaining anything to you dopes.

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