Author Archives: Heather Rupp

Revisiting “Hedged” High Yield

We have written in the past about some of the concerns we had the with “hedged high yield” strategy (see our blog), whereby investors go long high yield bonds and short Treasuries (or Treasury futures).   As we noted in our …

Posted in Peritus

A Look at Concerns Impacting the High Yield Market

Be it interest rate concerns or talk of a bond bubble, the high yield market has faced a step back over the past couple weeks. We’ve addressed the interest rate concerns at length—see our piece “Strategies for Investing in a …

Posted in Peritus

Duration-Based Investing: Yield Matters

It would be hard to have missed the call in the fixed income space for “short duration” products over the last year.  Duration is a measure of interest rate sensitivity (the percentage change in the price of a bond for …

Posted in Peritus

Is This Time Different? A Look at Duration

As we have written about, historically speaking the high yield bond market has performed well during periods of rising rates (see our piece, “Strategies for Investing in a Rising Rate Environment”), due to the fact that the high yield market …

Posted in Peritus

Size Constraints and Price Action in the High Yield Market

Over the past several years we have seen a shift in high yield bond trading as exchange traded funds (ETFs) have grown to be a prominent force within the high yield market.  While ETFs still represent a relatively small portion …

Posted in Peritus

High Yield in a Rising Rate Environment: A Perspective on Historical Performance

We spoke last week about some of the reasons high yield bonds have historically performed well in rising rate environments, including the following: Higher coupons and yields in the high yield space help cushion the impact of rising interest rates. …

Posted in Peritus

High Yield Bonds and Interest Rates

Over the last month, we have seen the equity markets hit all-time highs, all the while bond investors seem to be indicating there are reasons to be concerned, sending the 10-year Treasury to the lowest yields seen over the past …

Posted in Peritus

Strategies for Investing in a Rising Rate Environment

We ended 2013 with virtually everyone (except us) expecting rates to rise in the year ahead as the long awaited “taper” began. Well, so far in 2014 we certainly have not seen any rate pressure materialize as the Fed slowly …

Posted in Peritus

Expanding the Opportunity Set for Income Generation

High Yield investors should understand the difference between an index-based product and its yield generation characteristics and portfolio composition based on the underlying index, versus some of the expanded opportunities available to active managers.  For instance in the high yield …

Posted in Peritus

Recent High Yield Dynamics

We have seen various market dynamics impact the high yield bond market and some selling pressure ensue over the past couple weeks; however, at the end of the day, we do not see that the opportunity in the high yield …

Posted in Peritus