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.
For further details see:
DHY: This 9.8%-Yielding Bond CEF Is A Consistent Outperformer