Author Archives: Ron Heller

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

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 Pricing Issue in High Yield

I talk with many professionals in the asset management business each week.  There have been a few recurring questions: where is the bottom in high yield and what is causing this downturn? Let me explain. As per what has caused …

Posted in Peritus

The Opportunity for the Unconstrained

A recent article in the major financial press discussed how over the last year there has been a huge increase in inflows into non-index based or unconstrained funds and how the expectation is for money to continue to move out …

Posted in Peritus

Duration – Does it pay to shorten duration in the high-yield asset class?

As I have been traveling the country the past several months meeting with advisors, both independent and at the wirehouses, the talk and strategy has been to move their corporate fixed income allocations to shorter duration corporate debt and floating …

Posted in Peritus

The Gaming Indicator

Consumer Confidence came in at the highest level since 2008.  Really?  Is this a real world picture or a possible politicized number from a smaller sample of the population?  As we look at industry after industry, it appears that the …

Posted in Peritus

Pressures on the Consumer

Is anyone surprised that the economy has slowed and 2Q GDP came in at 1.5%?  I am not because if you live in the real world then you see, live and read about the trends and costs associated with the …

Posted in Peritus

Options in High Yield Investing

We have spoken quite often over the years about our passion and profession here at Peritus: high yield corporate debt. Just what is high yield corporate debt and what does it offer investors?  These are questions we have answered in …

Posted in Peritus

Demand = Catalyst

Demand = Catalyst Catalyst = Profits Profits = Spending Spending = GDP Growth As I read the government release of the household wealth gains/losses I can’t help but immediately think about what this means to GDP growth in the US.  …

Posted in Peritus

Managing Defaults

Fitch reported that the trailing 12-month default rate remained flat in April at 1.9%, as the month produced two defaults. The recent bankruptcy filings by mortgage lender Residential Capital (ResCap) and aircraft maker Hawker Beechcraft added $3.4 billion to the …

Posted in Peritus