PCN: Downgrading To Hold On Rates And Share Dilution

Impact · against what's priced in

PCN is downgraded to Hold as rising interest rates and share dilution create headwinds for the share price and NAV premium. While the 11.4% dividend yield provides a support level, the combination of borrowing costs and dilution outweighs the income appeal.

PCN−0.40

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In context

The downgrade to Hold is driven by the negative impact of rising interest rates and ongoing share issuance, which are expected to compress the NAV premium despite a strong 11.4% dividend yield.

Read from the article alone

• PCN
• dividend yield
• downgrade
• income funds
• interest rates
• nav premium
• pimco

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