Credit Suisse High Yield Bond: A High-Yielding Closed-End Fund Option

Credit Suisse High Yield Bond (NYSE:DHY) is a high-yield closed-end fund launched in 1998. It invests in a diversified portfolio of high-yield bonds with a focus on investment-grade bonds. The fund has a total net asset value of $1.03 billion and a distribution yield of 7.6%. As of September 2022, it has a market capitalization of $1.55 billion.

Title: Eagle Point Credit Company Inc. Reports Mixed Performance in First Half of 2025

Eagle Point Credit Company Inc. (NYSE: ECC), a closed-end management investment company, has released its semiannual report for the period ended June 30, 2025. The report provides an overview of the company's performance, investment strategies, and financial health during the first half of the year.

The report highlights several key points. Firstly, the company experienced a decrease in net assets due to operations of $40 million, or $0.33 per weighted average common share, primarily due to unrealized losses on investments. This resulted in a non-annualized GAAP return on common equity of -4.2% [1]. The net asset value (NAV) per common share decreased from $8.38 to $7.31, and the company paid $0.84 per share in regular monthly distributions to its common stockholders.

Despite the net asset decrease, the company actively deployed $285 million of capital into various investments, including $169 million in CLO equity. This investment had a weighted average effective yield (WAEY) of 18.4% at the time of purchase. The company also extended the weighted average remaining reinvestment period (WARRP) of its CLO equity portfolio to 3.3 years as of June 30, 2025, which is 43% longer than the broader market average [1]. This strategy offers protection from loan price volatility and enables the company to capitalize on periods of market dislocation.

The report also mentions that the company completed 13 resets and 8 refinancings of CLOs in its portfolio, leading to significant debt savings of 44 basis points on average. The company continues to have a robust reset and refinancing pipeline, which will further reduce its CLO financing costs over time and lead to stronger CLO equity cash flows.

The company generated strong recurring cash flows from its investment portfolio, which exceeded total company expenses and common stock distributions. It paid monthly common distributions of $0.14 per share.

Looking forward, the company continues to see attractive CLO equity investment opportunities in the secondary market with loss-adjusted expected yields in the mid- to high-teens. The recent drawdown was relatively short-lived, and the recovery in CLO equity typically lags the recovery in loans and stocks.

The company also raised $106 million of additional common equity through its "at-the-market" (ATM) program and $60 million in net proceeds through the issuance of its 7.00% Series AA and AB Convertible Perpetual Preferred Stock (AA/AB Perpetual Preferred). The company views its perpetual preferred stock as a significant competitive advantage.

As of July 31, 2025, the closing price per share of common stock was $6.88, a discount of 5.9% compared to the NAV of $7.31 as of June 30, 2025. The company's non-annualized total return to common stockholders, on a market price basis and assuming reinvestment of distributions, was -4.0% for the six months ended June 30, 2025.

References:
[1] https://www.marketscreener.com/news/eagle-point-credit-ecc-semiannual-report-1h25-ce7c51dad98afe21