Author Archives: Heather Rupp

The New Case for High Yield: A Guide to Understanding and Investing in the High Yield Market

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 …

Posted in Peritus

Volatility: High Yield Bonds versus Equities

Volatility has once again returned to financial markets over the last couple months, most visibly with wild equity price movements that we saw in February and again over the last week. While the high yield bond market certainly has not …

Posted in Peritus

Credit Risk versus Interest Rate Risk

As we brace for another FOMC meeting and an expected rise in the Federal Funds Rate, we continue to hear investors express concerns about how the high yield market will fare in the face of rising rates.  Looking back over …

Posted in Peritus

Strategies for Investing in a Rising Rate Environment

Accurately calling interest rate moves has proved to be a difficult, and futile, task for investors over the past several years as we have seen wild moves and really no sustained direction.  While the only aspect of rates that can …

Posted in Peritus

The High Yield Market Outlook

As we start the new year, much of the focus has been on interest rates.  We’ve seen the Fed moving up the Fed Funds rate up for the last two years, all the while the 10-year Treasury yield hit the …

Posted in Peritus

The Return of Volatility

Today, people are left trying to make sense of yesterday’s wild ride in the equity market in the hour before the market close, followed by the quick move down (even into “correction” territory on the Dow) and subsequent reversal this …

Posted in Peritus

High Yield in a Rising Rate Environment

The widely held expectation is that the Fed will raise rates at least three times again this year.  The question becomes what does this mean for fixed income markets? Investors often seem to be under the notion that anything “bond” …

Posted in Peritus

The High Yield Bond Market: The Year in Review

We’d characterize 2017 as a steady year for the high yield bond market.  Generally speaking, high yield bonds saw a steady move up with a few small blips down that were short-lived and met with buying.1 In total, the high …

Posted in Peritus

Dispersion in the High Yield Market

We saw heightened volatility return to the high yield market in early November, but after a couple weeks it largely dissipated and the market quickly rebounded.  We have seen a few similar bouts so far this year, with the marketing …

Posted in Peritus

Is Another Period of Industry Contagion in the High Yield Market on the Horizon?

Over the past couple weeks, we’ve heard several comparisons to what we are seeing today in the high yield market, to the energy-related decline we saw a couple years ago, with people questioning if this is just the beginning.  We …

Posted in Peritus