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Carillon Chartwell Short Duration High Yield Fund Q4 2025 Commentary

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⚡ Quantum Brief
The broad high-yield bond market delivered a 1.37% return in Q4 2025, capping an 8.55% annual gain—the strongest performance since pre-pandemic levels. The rally reflects easing inflation and Fed rate cuts. U.S. inflation, tracked by CPI, declined further in Q4, though a government shutdown disrupted data collection, raising questions about accuracy. Analysts caution the trend may reverse if economic conditions shift. The Federal Reserve cited labor market weakening as justification for additional rate reductions, signaling a dovish policy shift. Lower rates boost high-yield bonds but risk reigniting inflationary pressures. Utilities and insurance sectors led gains in the Carillon Chartwell fund, outperforming broader high-yield indices. Energy lagged amid volatile commodity prices and regulatory uncertainty. Managers reaffirmed high-yield credit as a core long-term holding for diversified portfolios, citing resilient corporate balance sheets and attractive yield spreads relative to investment-grade debt.
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Raymond James Investment Management27 FollowersFollow5ShareSavePlay(10min)CommentsSummaryThe broad high-yield bond market saw a 1.37% return, bringing calendar year 2026's total return to 8.55%.Inflation, as measured by the U.S.

Consumer Price Index (CPI), continued easing during the fourth quarter.The Fed saw the recent softening in labor market data as justification to continue lowering interest rates.Utilities and insurance were the Carillon Chartwell Short Duration High Yield Fund's best-performing sectors.We believe high-yield credit is still an important strategic long-term allocation for diversified portfolios. IURII KRASILNIKOV/iStock via Getty Images Market Overview Inflation trends lower, for now Inflation, as measured by the U.S.

Consumer Price Index (CPI), continued easing during the fourth quarter. However, the government shutdown caused disruptions in the data collection process that may have called its reliabilityThis article was written byRaymond James Investment Management27 FollowersFollowRaymond James Investment Management is a global asset-management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. They believe providing a lineup of institutional-class portfolio managers is the best way to help investors seek their long-term financial goals. Note: This account is not managed or monitored by Raymond James Investment Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Raymond James Investment Management's official channels.

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