The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Pimco Closed-End Munis to Delay Divvies Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, December 02, 2008

Pimco Closed-End Munis to Delay Divvies

by: Sean Hanna, Editor in Chief

Pimco will delay the monthly dividends on six of its closed-end funds. The payment delay stems from the market's downturn, reports the WSJ. All of the funds that will make later dividend payments are municipal closed-end funds and have used auction-rate preferred shares as part of their investment mix. Pimco officials pointed to "severe market dislocations and recent further erosions in the municipal bond market" as a reason for the delay.

Those market losses have caused the funds' asset-coverage ratios to fall below the 200 percent bar set by the 40 Act. While the funds' ratio of assets to senior securities remains below that level, they are barred from making dividend payments.

The funds -- Pimco's Municipal Income Fund II, Municipal Income Fund III, New York Municipal Income Fund, New York Municipal Income Fund III, California Municipal Income Fund II and California Municipal Income Fund III -- had been scheduled to make their dividend payments on December 31.

In addition, Pimco's Corporate Income and Corporate Opportunity will also postpone their December 31 payment. Both of those funds paid their regular dividend yesterday (December 1). 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use