Author Archives: Heather Rupp

What we Know

All eyes are on September 21st.  Just over a week or so ago, people seemed to feel a September rate hike was unlikely, now over the course of a week and a bit of hawkish Fed-speak, many now seem to …

Posted in Peritus

Looking for Yield?

After a rough start to the year, following a negative 2015, the high yield bond market has reversed course and posted strong returns year-to-date, now up 15.0% through the end of August1.  This compares to a return of 7.8% for …

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 $41 trillion.1 Corporate credit (high grade, high yield bonds, and floating rate loans) is about $9.3 trillion of this …

Posted in Peritus

Breaking the Correlation

Oil prices began their decline in late 2014 and accelerated over 2015 into early 2016.  As we got into 2015 and early 2016 we were see a dynamic whereby declining oil prices were causing contagion to the entire high yield …

Posted in Peritus

Loans: Understanding The Floating Rate

As we have previously noted (see our piece “Today’s Floating Rate Loan Market”), we see investing in the loan market as predominantly a way to expand our investment universe. High yield debt issuers have the option to issue bonds, loans, …

Posted in Peritus

Today’s Floating Rate Loan Market

We are high yield debt investors.  While our focus over the decades has been on investing in high yield bonds, we also do allocate a portion of our portfolio to floating rate bank loans.  Over the past couple decades, these …

Posted in Peritus

High Yield Bonds and Rates: Duration and Yield

With another Fed meeting on the horizon this week, the topic of rates has again come into focus.  While in just a matter of months, markets have seemed to quickly move from the expectation that we’d see a few rate increases …

Posted in Peritus

First Half Update

After seeing prices indiscriminately marked down virtually across the board in the second half of 2015 and first couple months of 2016, general high yield market sentiment improved beginning in late February, helped by oil prices stabilizing and the realization …

Posted in news

High Yield Market Default Update

As we stand today, default activity year-to-date has already surpassed the par default level for all of 2015.  However, the defaults remain almost entirely in the commodity sectors—Energy and Metals/Mining—while outside of these segments, default rates remain at or near …

Posted in Peritus

Unprecedented Times

We are in the midst of unprecedented times.  Over the past week, we have seen the S&P 500 hit record highs and the US 10-year Treasury bond yields hit record lows.  We see headlines like “NIKKEI soaring on stimulus expectations,” …

Posted in Peritus