Category Archives: Peritus

Demand and Rates

With Trump’s election, it is now seems to be “consensus” that the Federal Reserve is going to raise rates another three times in 2017.  We question this assumption.  In fact, we may have already seen the highs on the 10-year …

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Investment Options in Corporate Debt

Fixed income is an important component of a balanced portfolio.  The problem many investors and advisors face today is where do you find yield in this environment and what happens to your fixed income exposures should rates rise?  Where can …

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Pricing Risk and Playing Defense

Since the election, we have watched equity markets soar, bond yields rise dramatically and animal spirits returning to life.  Is this the beginning of new trends or the beginning of the end of the rallies that began in 2009?  The …

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Managing Volatility

As we have talked with advisors and investors over the past couple years, we often hear the topics of yield and volatility mentioned.  Investors are looking for yield and income generation, especially in the persistently low yield environment we’ve seen …

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High Yield Bonds for Income and Total Return Potential

Asset allocation is a delicate balance for any investor, but it has been complicated by certain factors within the current financial environment, including high equity valuations, the potential for higher interest rates, and the need for some yield in a …

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High Yield Market: Upcoming Maturities

One thing we look at as a high yield bond investor is the amount of upcoming maturities, as it can be important as we think about both defaults and the supply of new bonds.  Below are the amount of upcoming …

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The Year of Active Management

The Bank of America Merrill Lynch US High Yield Index currently carries a weighted average yield to worst of 5.9%, a yield to maturity of 6.3%, a spread to worst of 423 bps, an average coupon of 6.5%, and average …

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The High Yield Bond Market: 2016 Review, 2017 Outlook

We entered 2016 coming off a tough year for the high yield market.  The free fall in energy and other commodity prices over the course of 2015 not only caused a collapse in bonds in the energy and commodity sectors, …

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Is There a Place in Portfolios for Fixed Income?

The widely held assumption as we enter 2017 is that this will be the year we see the Fed take real action.  While we aren’t convinced that longer term (5 and 10yr) Treasury rates move much further from where we …

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High Yield Default Rate: 2016 Review and 2017 Outlook

In early 2016, oil was heading into the $20s and market prognosticators were expecting that we’d see a huge spike in energy and commodity related defaults in 2016 and that would continue into 2017.  The projection was for a 6% …

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