The New Case for High Yield – April 2018
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.”
The New Case for High Yield – September 2015
Throughout its nearly 35 year history, 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.”
The New Case for High Yield – March 2014
Throughout its 30+ year history, 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. In it we detail the history and development of the space, discuss the legislation and ratings methodologies that have created 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.
The New Case for High Yield – January 2013
Throughout its 30+ year history, 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. In it we detail the history and development of the space, discuss the legislation and ratings methodologies that have created 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.
The Case for High Yield in 2010 – November 2009
We were pretty convinced a year ago that the entry point into our asset class would turn out to be a once in a generation opportunity. What we did not expect was to see this play out in so short a time frame. As we remain surrounded by massive and growing unemployment, a collapsed real estate market and a host of other economic issues, corporate credit investors seem to find themselves in something of a nirvana. The reality is many balance sheets are incredibly liquid and being de-levered as management teams focus on survival not growth. Companies have been stress tested like never before and money flows into high yield are likely to increase as institutional investors seem to be under-allocated to the asset class.
Re-Defining Core Fixed Income – October 2008
We believe that the fixed income asset class is in the midst of being re-defined, as investors are turning away from their obsession with pigeonholing investment managers into style boxes in favor of absolute return philosophies. With this, we believe that our fundamental investment philosophy of viewing corporate debt instruments as either AAA or D will perhaps get some respect. Additionally, in looking at the data, we don’t see a place for a significant allocation to investment grade debt; rather a combination of higher yielding corporate bonds with treasury bonds as a hedge seems a more effective strategy.
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Peritus I Asset Management Disclosure:
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. These reports are for informational purposes only. Any recommendation made in these 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. Past performance is not an indication or guarantee of future results. Historical performance statistics and associated disclosures available upon request.
