Sunday, July 5, 2015

Mister Peabody's Improbable Investment Machine

In last week's episode, our dog hero found himself chasing yield, much to the dismay of his boy Sherman.

June 22, 2015
How Reaching for Yield Ends

A more egregious example has been the Pimco High Income Fund (PHK). I started writing about this closed-end fund last April when it was trading at over a 53% premium to its net asset value (NAV). You read that correctly. Investors were so enthralled by the yield-to-NAV of 17.7% they were willing to pay $1.53 for a $1.00 of assets.

Which only goes to show that some junk investments make no cents.

See Also:
Mister Peabody

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