Monthly Archives: May 2017

Understanding Risk in High Yield Bonds: A Look at Volatility

The high yield market, also known as the “junk bond market” seems to be considered by many to be a risky and volatile, niche market.  The reality is that there are nearly $2 trillion US dollar, non-investment grade bonds globally.1 …

Posted in Peritus

High Yield Morning Update

The high yield secondary bond market is opening up higher today, as the new-issue calendar continues to be light, forcing buyers into the secondary market.  Only eight deals for $3.685B in proceeds priced last week, the slowest week this month.  …

Posted in Peritus

The Middle Ground

We are hearing concerns from some about valuations within the high yield market.  Spread levels are one way we assess value within this market and current spread levels are below historical medians and averages.1 We believe this makes sense given …

Posted in Peritus

High Yield Morning Update

Investment grade and high yield credit rallied modestly following the French election and the release of solid economic data. The VIX is at or near all-time lows, even when many are saying high yield is overvalued.  Many also say that …

Posted in Peritus

The Pillars of the Peritus Strategy

Currently 23% of the domestic high yield bond market trades at a yield-to-worst under 4%.1  So on nearly a quarter of the market, investors are currently making what they might traditionally expect from investment grade debt.  This is exactly why …

Posted in Peritus