Throughout its history spanning over three decades, the high yield market has often been viewed as a confusing or an alternative asset class. However, the reality is that this is a large, developed and liquid asset class. We have provided this “owner’s manual” for those investing in the high yield market, to shed some light on this often misunderstood market. In it we detail the history and development of the space, discuss the legislation and ratings methodologies that have created what we see as opportunities in the marketplace, and compare historical risk adjusted returns with other asset classes. Additionally, we describe our own investment philosophy and approach to the high yield market. We believe that the benefits from investing in the high yield market are undeniable. Click here to view our updated piece, “The New Case for High Yield: A Guide to Understanding and Investing in the High Yield Market.”
Although information and analysis contained herein has been obtained from sources Peritus I Asset Management, LLC believes to be reliable, its accuracy and completeness cannot be guaranteed. This report is for informational purposes only. Any recommendation made in this report may not be suitable for all investors. As with all investments, investing in high yield corporate bonds and loans and other fixed income, equity, and fund securities involves various risks and uncertainties, as well as the potential for loss. High yield bonds are lower rated bonds and involve a greater degree of risk versus investment grade bonds in return for the higher yield potential. As such, securities rated below investment grade generally entail greater credit, market, issuer, and liquidity risk than investment grade securities. Interest rate risk may also occur when interest rates rise. Past performance is not an indication or guarantee of future results. The index returns and other statistics are provided for purposes of comparison and information, however an investment cannot be made in an index.