Something tragic happened at the start of this month—but it’s such a familiar tragedy that no one should have been surprised.
If you held the PIMCO CA Municipal Income III Fund (PZC), however, I bet you were surprised—and now you might be panicking. A closed-end fund (CEF) that was soaring for months all of a sudden crashed, going from being up 12% year-to-date to down 2.8%:
Look Out Below
Until July 3, PZC was one of the best-performing municipal-bond funds in the world. While the CEF Insider Tax-Free Bond Index was up 6.1%, PZC had nearly doubled it, gaining a stunning 11.6%.…