HYG - DHY: This 9.8%-Yielding Bond CEF Is A Consistent Outperformer

Summary

• Corporate bonds have performed strongly so far this year, outperforming bank loans, as Treasury yields continue to move lower.
• Credit Suisse High Yield Bond Fund allocates primarily to high-yield corporate bonds with a pocket of CLO debt and bank loans that has allowed its net income to remain resilient last year.
• The closed-end fund has outperformed the sector across various time horizons, in part due to its dynamic leverage profile and wider mandate.
• DHY's discount is wider than the sector average, despite its historic outperformance.
• DHY trades at a 9.8% yield and a 10.4% discount. The fund remains in our Core and High Income Portfolios.

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