PCI is still retains a discount although. Narrower than in the past.
Separate question: Do folks regard PONDX/PIMX/PONAX as a core holding or a high yieldly satellite? Just curious what folks like @junkster, @davidsnowball, @mikem, @oldskeet think?
Regards,Mike

Mike I can't help you because of the short term nature of my methodology. I was in PONDX in 2012 and a few months in early 2013 but not again until this year. Its returns from 2013 through 2016 were not inspiring. Much of this year's returns are from its exposure to rmbs primarily non agency. I read somewhere PIMCO and Ivascyn are buying all the legacy non agency rmbs from before the crash they can get their hands on. I am 55% IOFIX and 45% DPFNX now which is primarily all non agency but with a heck of a lot less AUM. How long this ultra steady rise in that market can continue there I have not a clue. But the strong housing market has helped immensely.

Schwab.com shows PIMIX with a portfolio breakdown consisting of 151% bondholdings, meaning it is highly leveraged, and PONAX is the same. With this much leverage these funds are too risky for this retiree. IOFIX appears to be nearly all securitized debt, which I believe basically means mortgages, again too risky for me. With the debt market at an all time high I plan to stick with treasuries, CDs and cash for now rather than stretching for yield.

I like what I see in IOFIX, but I am not a bond expert. They say: Weighted Avg. Life: 13.4yrs, Weighted Avg. Effective Duration: 1.8yrs. Can you help me to understand what does it imply for the INTEREST RATE SENSITIVITY? As far as I understand, interest rate sensitivity is determined by Weighted Avg. Effective Duration: 1.8yrs, so it may be risky if they are wrong with respect to securitized debt, but they are safe with respect to the Fed. Is it their "magic sauce"? Is it similar in this respect to what ensures magic stability of RPHIX?

Hi @Junkster
Yowie, eh?
IOFIX = +29.9%
PIMIX = +13.4%

http://stockcharts.com/freecharts/perf.php?PIMIX,IOFIX&n=521&O=011000
I double checked the performance math against M* and indicates correct.
I have not reviewed IOFIX magic sauce, although it appears they use "special tools", too.
Disappointed that the web site for the fund has not been updated for 1 year. Suppose the folks are too busy running the algo's.
Take care,
Catch

Thanks Mark "catch22" no special sauce/derivatives/leverage just non agency RMBS. One of the fund managers (Brian Loo) gave me a long tutorial on the niche they operate in. The link below is a current fact sheet from the company. Hopefully few here will rush out and buy because of its high expense ratio and the toxic assets they specialize in. The last thing I want is for this to become a "groupthink" fund because then the party may be over. Anyway I mentioned this back in March so why buy it now? Hopefully some of the bond cognoscente here can steer everyone away from this fund - just as they would have done at the beginning of the year.
http://alphacentricfunds.com/funds/IncomeOpp/FactSheet.pdf

Hi @Junkster
Yowie, eh?
IOFIX = +29.9%
PIMIX = +13.4%

http://stockcharts.com/freecharts/perf.php?PIMIX,IOFIX&n=521&O=011000
I double checked the performance math against M* and indicates correct.
I have not reviewed IOFIX magic sauce, although it appears they use "special tools", too.
Disappointed that the web site for the fund has not been updated for 1 year. Suppose the folks are too busy running the algo's.
Added: Relative to 14 day RSI (Relative Strength Index) with 70 being the edge of "too hot" and 30 being the "everyone has sold" (value), IOFIX has been at about 97 since day one, with a small down blip of a few points.
Take care,
Catch

@Junkster - Thanks for mentioning IOFIX. I owned DPFNX recently, but IOFIX looks even better.
TDA has superior municipal high yield funds NHMAX and ORNAX. And OOSAX and EAFAX are excellent bank loan funds offered at TDA.

I have made a major overhaul. I no longer need/want to take *any* risk. But before I go the CD laddering and money market route thought I would try something first. I hold 8 bond funds the most funds I have ever held. Sort of a fund of funds approach. Based on performance hope to winnow that down to three or four funds. PONDX is my largest holding because of its persistency of trend. Another holding is IOFIX. Don't believe it has ever been mentioned but a real persistent trender. If I can beat a CD and money market return will just stick with this in retirement. I believe the normalizing of rates by the Fed could be a boon for retirees. 3% or more in money market rates down the road? Sign me up!
Edit: I should add I am really stymied by Scottrade's limited offerings and/or advisor only funds and will be glad when their merger is complete with TD Ameritrade.