PGP: Heavy Use Of Leverage Will Amplify Losses In A Downward Market

PIMCO Global StocksPLUS and Income Fund (PGP) is downgraded to Hold due to heightened risk from elevated leverage and interest rates. PGP's effective leverage exceeds 50% of assets, amplifying downside risk if both fixed income and S&P 500 exposures underperform. The fund's NAV growth is constrained by high interest rates, locking PGP into low-coupon debt and increasing vulnerability to further NAV erosion.