just talked to PIMCO on the phone and asked them about the NAV on their website, they said they have market-based pricing for most of the portfolio, so the daily NAV is pretty close to what a rigorously audited number would be... fund still has a healthy positive UNII balance, said that the current yield on the portfolio is still greater than distribution, so UNII is still building... said portfolio performance "is holding up really well". Wouldn't commit to any sort of year-end special divvie like last year, though.
bought back some shares at close to 10% discount, figure the current discount plus the income (plus the fact that the current distribution is still all investment income, not some funky return-of-capital) gives me about an 18% cushion against a NAV decline over next year, which should be plenty of downside protection.
I'm not saying rates won't be somewhat higher next year -- maybe we'll see a 3% 10-yr bond instead of 2.6%? But I have a funny feeling now that the upside explosion in rates that everyone is fearing will fizzle out in the face of weak economy.
tough call with the 10 year bond. but the "improving" economy seems to be somewhat smoke and mirrors. new part-time jobs are being created at a far higher rate than full time. so far in 2013, 130,000 full time jobs have been added, while 557,000 part time jobs have been added to the economy.