Joshua Byrini's Market View

PFN, Pimco's Floating Rate closedend fund is a diversified portfolio of adjustable rate securities, which make a good alternative place to park for those who need to "realize losses" at year's end. Say you were down 4 to 10 percent in VVR, or, PPR and you want to carry those losses to offset taxes next year. PFN looks like just the parking place in light of Bill Gross' recent insider buy of 33,000 shares (over 700k). PFL is a second space to place what's left over after harvesting a loss on the year in other vehicles, in which Billiam Gross placed another 500k of his own money. PFN yields 7, closer to 8%, and PFL is yielding 8, closer to 9%.

NCZ is a third, managed by the same group that manages the Pimco closed end funds listed about, where Gross placed his bets. NCZ is a Nichlaus Applegate fund of convertable securities, yielding over 9%, but with no vote of confidence by Gross.

The Pimco charts show that they have tanked a bit with other adjustable rate funds as interest rates have risen (and Greenspan was retired). Other funds that have tanked in the same way in spite of the adjustable feature include PPR and VVR. The stock prices have declined, raising the yields further, which also adjust upward inside the portfolio as interest rates rise. We think these provide something to look at with yields crossing 8 percent in most cases.

Gross overseas PIMCO, an asset manager with one of the largest Bond portfolios in the world.