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Posted by
Two Blokes Jul 30 -
Filed in
Stock
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2 views
PDO's 11% yield, as mouthwatering as it is in absolute terms, is less attractive when properly benchmarked. Given the recent rises in risk-free rates, its yield spread vs. treasuries is below the historical average. The fund's heavy exposure to non-agency mortgages and high-yield credit isn't properly compensated by its current yields amid rising delinquencies.
