PIMCO Dynamic Income Fund (PDI): Big Yield, Challenging Times

The appeal of the PIMCO Dynamic Income Fund (PDI) is easy to understand. A double-digit distribution yield, monthly income, and the PIMCO brand have made the fund one of the most widely followed closed-end funds (CEFs) in the income-investing universe. But as with any high-yield CEF, investors should look beyond the headline payout and ask a more important question: how sustainable is the income stream?