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PIMCO Income Strategy Fund II Message Board

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  • up1.down2 up1.down2 Jul 23, 2012 10:19 AM Flag

    Danger Danger Mr Robinson

    No offense taken. PFN is advancing because there are soooo many with 5yr/5% CD's that are expiring and now are running to these type of funds to replace that income.

    PFN is not advancing because of their income statement or balance sheet. If you wish to adopt the herd mentality and trample with the rest just remember sheeple do get slaughtered.

    You shouldn't put your money on Me or a market trend. It would much wiser to put your money where direct due diligence reveals to do so. Anyone performing due diligence on this fund should be concerned about pending events. Likely most don't have a clue what is pending.

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    • i sold big chunk today. HY is very tight, charts are overbought, premium to NAV is high historically.

      Plus this Brigade issue, which, frankly, I dont get (but adds to anxiety). what i dont understand is if they are forced to redeem ARP, why can't they find other source of funding? should be able to find something just as cheap, no? they are PIMCO, after all... anyway, still sold quite a bit, but for other reasons... Thanks for feedback anyways!

      • 1 Reply to ex_nihilo7
      • Although ARPs are Preferred Shares they are auctioned off like bonds in the secondary market. The auctions of late have been dismal for ARPs so Brigade feels Allianz (formerly Pimco) should redeem them. Brigade is basically crying in their own cereal bowl expecting Allianz to bail them out by using precedence of redemption history.

        Your thoughts on alternate sources of funding does have merit but only if Allianz can obtain debt at the same rate. The highest rate on the ARPs issued by Allianz is 1.466%. Personally I don't think Allianz can come even close to this rate.

        At 1.466% it's clear why Allianz doesn't want to redeem these ARPs. Nobody can unequivocally state the outcome of this battle but the historically cheap leverage is definitely being challenged with the Brigade development.

 
PFN
9.88+0.05(+0.51%)Jul 2 4:02 PMEDT