Category Archives: 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 …

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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. …

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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 …

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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 …

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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 …

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The Decoupling of High Yield and Energy

Much of the story in the high yield market over the last almost three years now has been energy related.  In the summer of 2014, we were seeing oil prices (WTI) surpass the $100 level.  In the fall of 2014, …

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The Demographic Impact on the Fixed Income Market

We see demographics as an important factor when considering interest rates and the fixed income market.  We are in the midst of a significant global shift in demographics as the baby boom population ages.  As we look out over the …

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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 …

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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 …

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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 …

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