InvestmentJun 24, 2026, 04:07 PM
PIMCO Income Strategy Fund II to Originate Loans
AI Summary
PIMCO Income Strategy Fund II announced a significant change to its principal investment strategy, effective June 24, 2026, allowing it to invest in and/or originate various types of loans. This includes residential and commercial real estate, mortgage-related, consumer, and other loans, which may be secured or unsecured, and can be made to unrated or below investment grade borrowers, including foreign entities. The Fund's prospectus and statement of additional information have been supplemented to reflect this change and detail the associated risks, such as credit risk, liquidity risk, and specific risks related to loan origination and foreign lending.
Key Highlights
- PIMCO Income Strategy Fund II is now permitted to invest in and/or originate loans as a principal investment strategy.
- The Fund can invest in residential/commercial real estate, mortgage-related, consumer, and other loan types.
- Loans may include whole loans, assignments, participations, secured/unsecured notes, mezzanine, and bridge loans.
- The Fund can lend to unrated or below investment grade borrowers, including foreign entities and individuals.
- Certain loans acquired or originated by the Fund may be subprime in quality.
- The Fund is not limited in the amount, size, or type of loans it may invest in or originate.
- New risks associated with loan origination, including credit, liquidity, and foreign lending risks, are detailed.
Price Impact