Read the FY 22 report.~51% of assets are in sub-investment grade...

Read the FY 22 report.

~51% of assets are in sub-investment grade or unrated assets. Of the remaining 49%, the large majority are BBB rated....one rating above speculative/sub-investment grade.

~36% of debt securities are fixed interest, not floating.

The aussie 3yr treasury is at 3.8%. In this environment, a running yield of 6.5% using the discounted NTA is not close to attractive, especially whilst being stuck in a LIC that sucks 15% of your income in fees.

For my short duration sub 18 month fixed income book, I need returns of ~8% at the moment where I perceive there to be essentially zero credit risk. If you work for a family office and can't find these deals, feel free to get in touch it's always nice talking to other smart investors.

PCI in my view has reasonable credit risk, and duration is ~3rs, so my return hurdles are much higher than 8%.