PIMCO Corporate & Income Strategy Fund adds loan origination, unlimited defaulted bond investing

PIMCO CORPORATE & INCOME STRATEGY FUND

Effective June 24, 2026, the Fund may invest in and originate loans—including real estate, consumer, and corporate loans—without credit criteria restrictions.
From July 24, 2026, the Fund may invest without limit in defaulted bonds, adding high-risk distressed debt exposure.
The supplement removes the 20% cap on below-investment-grade debt (except CCC+ or lower) and lifts prior restrictions on stressed/distressed issuers.
Loan origination introduces risks: origination costs, broken deal costs, borrower credit risk, and potential illiquidity of loan investments.
These strategy changes significantly broaden the Fund's risk profile, allowing investment in subprime or unrated loans.

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