Category Archives: Peritus

Time to Go Active

Earlier this week we saw one of the major financial publications feature an article about how active management has outperformed passive management so far in 2015. While their article and data focused on equity funds, we believe that the same …

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Rates and Returns, 2013 versus 2015

Given the recent move in Treasury yields, with the 10-year U.S. Treasury yield up over 30bps in just the last 30 days, the concern about interest rate risk is heating up again.  As we have written about in the past, …

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A Look at High Yield Bond and Equity Valuations

There has been talk in the media recently about high yield being overvalued at current levels. However, we feel that historical metrics indicate that we are nowhere near a point of overvaluation; rather, there is still value to be had …

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High Yield Bonds: A Legislative History and the Opportunity Created

Throughout history of the high yield market there have been various legislative acts that have created and continue to create the market dislocation that allows investors an opportunity to produce what we see as attractive risk-adjusted returns.  The Financial Institutions …

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The Origin and Growth of the High Yield Market

Most investors place the origins of the high yield market in the late 1970s, which would not necessarily be wrong if by the high yield market we mean “original issue” high yield. Truthfully, high yield lending has been going on …

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High Yield in a Rising Rate Environment

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Irrational Oil Markets

“Markets can remain irrational longer than you can remain solvent,” John Maynard Keynes We would think if Mr. Keynes was alive today, he would certainly apply his famous quote to today’s oil markets. After collapsing almost 50% during the last …

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Definition of High Yield

Just what is the formal definition of high yield? High yield, or its more polite acronym, non-investment grade, is based off of the ratings grids provided by the two major credit rating agencies, Moody’s and Standard & Poor’s. All bonds …

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Overview of the Fixed Income Market

As we look at the high yield bond market, it is important to have an understanding of the fixed income marketplace and the investment options within it. The first thing to note is the sheer size, which is massive (just …

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High Yield Bond Investing: The Opportunity in Volatility

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