PDO: This Nearly 11% Yielder Is Not Just For Income Investors

Impact · against what's priced in

The fund is well-positioned for further Fed rate cuts due to its MBS exposure and leverage structure. The DRIP discount provides a marginal boost to total return potential beyond the current yield.

PDO+0.50

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In context

The fund's high leverage and MBS exposure create a direct tailwind from further Fed rate cuts, while the 5% DRIP reinvestment discount enhances total return potential.

Read from the article alone

• fed
• PDO
• emerging markets
• income fund
• mbs
• mortgage backed securities
• pimco
• rate cut
• total return

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