Category Archives: Peritus

Understanding an Index

So much has been made of indexing/passive-investing over the past several years.  Investors are often enticed by the lower fees and broad exposure, and often the perception that there is lower risk via the thought it that you won’t underperform …

Posted in Peritus

Lower for Longer

Today we saw the 10-year yield hit its lowest rate since November.  While some of the pressure is related to the tensions with North Korea, if markets were really fearful the worst would become reality, we’d see a full “risk …

Posted in Peritus

The Earnings Opportunity

Starting in late July and continuing through the first half of August is earnings season for most of our credits, which is a very important and busy time for us.  As active managers, we not only evaluate a credit as …

Posted in Peritus

Where We’ve Been and Where We Are Now

To understand where you are in the high yield market, it is helpful to take a look at where we have been.  People talk about how we are 8+ years into this “cycle” and are express concerns about valuations.  We …

Posted in Peritus

High Yield Morning Update

High yield bonds were better yesterday and today is opening slightly better too.  Three new issues priced yesterday for $1.55B in proceeds with three more on the docket for today.  The default risk in high yield bonds still remains low, …

Posted in Peritus

Yield Still to be had in Today’s High Yield Market

The high yield bond market has seen a decent start to the first half of the year, with the Bloomberg Barclays High Yield Index up 4.93% through June.1  However, as we near almost a decade in this low interest rate …

Posted in Peritus

Passive versus Active in High Yield

There is so much talk about active versus passive, with many seeming to feel the world of investing was moving to largely passive over the last couple years, only to see active management once again gain some ground in 2017. …

Posted in Peritus

The High Yield Market: Market Size, Ownership, Funds, and Opportunities

The entire U.S. fixed income market (municipals, Treasuries, mortgages, corporates, federal agency bonds, money market, and asset back securities) totals over $40 trillion.1  Breakdown of U.S. Fixed Income Asset Class (as of December 31, 2016) Corporate credit (high grade corporate …

Posted in Peritus

Mid-Year High Yield Bond Market Default Review and Outlook

Coming off of a spike in total high yield bond default rates in 2016 due to a large number of energy, metals and mining, and other commodity related defaults, the expectation was for defaults to significantly ease heading into 2017.1 …

Posted in Peritus

Rates and Gridlock

In the seven months since the election we have seen the 10-year Treasury yield move up to 2.6% in December, hit that level again in March, and we have since seen a steady decline to where we are today with …

Posted in Peritus