PAXS CEF: High-Yield Bond Fund, Trading At A Discount To NAV

PIMCO's PAXS closed-end fund offers a 12.28% yield and monthly payouts, but investors should be aware of leverage risks.

Mar. 19, 2026 at 7:24am

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PIMCO Access Income Fund (PAXS) is a closed-end fund that invests primarily in high-yield bonds. The fund is currently trading at a discount to its net asset value (NAV), which the author sees as an opportunity for income-focused investors looking for a long-term buy-and-hold investment. However, the author also notes that the fund utilizes leverage, which carries additional risks.

Why it matters

Closed-end funds like PAXS can provide higher yields than traditional bond funds, but the use of leverage also introduces additional risks that investors should be aware of. The current discount to NAV represents a potential buying opportunity for those seeking income, but the leverage and high-yield nature of the fund's holdings means it may not be suitable for all investors.

The details

PAXS invests primarily in high-yield corporate bonds, with the goal of providing a high level of current income. The fund utilizes leverage to enhance its yield, which can amplify both gains and losses. Currently, PAXS is trading at a discount to its NAV, which the author sees as an attractive entry point for income-focused investors willing to hold the fund for the long term.

  • PAXS is a closed-end fund that has been trading on the NYSE since its inception.

The players

PIMCO Access Income Fund (PAXS)

A closed-end fund managed by PIMCO that invests primarily in high-yield corporate bonds.

David A. Johnson

The founder and principal of Endurance Capital Management, an investment management firm. He has over 30 years of experience investing in a variety of asset classes.

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What they’re saying

“I rate PIMCO Access Income Fund (NYSE: PAXS ) a Buy, for income-focused investors who are looking for long-term buy-and-hold investments.”

— David A. Johnson, Founder and Principal, Endurance Capital Management

The takeaway

PAXS offers income-focused investors a high-yield bond fund trading at a discount to NAV, but the use of leverage means the fund may not be suitable for all investors. Those considering PAXS should carefully evaluate the risks associated with its high-yield, leveraged investment strategy.