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Summary

PIMCO Access Income Fund currently yields 13.9% and trades at a 7% discount to NAV, appealing to income-focused investors.

PAXS covers about 90% of its distribution with investment income but overpays by 10%, raising a mild risk of NAV erosion if headwinds persist.

The fund employs high leverage (~40%), which amplifies both income and risks, especially in a rising interest rate environment anticipated for 2026–2027.

The valuation and yield are attractive, but we rate PAXS as neutral/hold due to ongoing macroeconomic uncertainties caused by high interest rate environment.

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Introduction:

PIMCO Access Income Fund (PAXS) is a closed-end fund with a fairly short history. The fund was incepted in January 2022.…