DHF: This High-Yielding Bond Fund May Struggle To Sustain Its Distribution

The BNY Mellon High Yield Strategies Fund offers an 8.64% yield, outperforming most bond indices but best suited for tax-advantaged accounts. DHF's leveraged junk bond portfolio faces after-tax real yield compression, especially amid persistent inflation and elevated market risk perceptions. Recent performance lagged benchmarks, with a 5.45% share price decline over six months, amplified by leverage and macro volatility.