PDO: 11% Yield And Exposure To A Strong Mortgage-Backed Securities Market
Portfolio Pulse from
PIMCO Dynamic Income Opportunities Fund (PDO) has benefited from high leverage and significant exposure to mortgage-backed securities (MBS) in 2024. Falling short-term interest rates and a steepening yield curve are expected to continue boosting returns in 2025. Non-agency RMBS exposure is a key performance driver.
December 06, 2024 | 9:15 am
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POSITIVE IMPACT
PIMCO Dynamic Income Opportunities Fund (PDO) has seen strong performance in 2024 due to high leverage and significant exposure to mortgage-backed securities (MBS). The fund is expected to continue benefiting from a steepening yield curve and falling short-term interest rates in 2025.
PDO's performance is closely tied to its MBS exposure and leverage strategy. The current market conditions, including falling short-term interest rates and a steepening yield curve, are favorable for PDO, suggesting a positive outlook for 2025.
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