Category Archives: Peritus

The Peritus Process: Managing Risk

What is risk and how is it defined?  To us, risk is about losing money and managing risk is what portfolio management is all about.  Let’s begin with credit risk, which is something we take on and expect to get …

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Exploration and Production Dividend Equities: What to Look for and What to Avoid

Eyebrows have been raised recently about the sustainability of dividends in the energy sector as more and more companies adopt a dividend paying model, be it Master Limited Partnerships (MLPs) or traditional equities that pay dividends. Some believe exploration and …

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Rates and Reality

With this week’s 4.0% GDP number and FOMC meeting statement, concern seems to re-emerge that rates will be headed higher in the near-term.  The Fed has said that they will keep rates low for a “considerable time” once the asset …

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An Inefficient Asset Class

We believe that the best approach to credit investing is to be agnostic on the credit ratings.  This ratings agnosticism is central to our investment philosophy and process.  We believe that credit ratings have created inefficiencies in corporate credit and …

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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 …

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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 …

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US Crude Exports Announcement

The recent announcement by the Department of Commerce Bureau of Industry and Security (BIS) regarding the approval of two applications to export limited quantities of field condensate, after undergoing minimal treatment by way of a stabilizer, is significant and should …

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The Opportunity in Unconventional Oil

Be it energy geopolitics or pipeline politicking, oil markets are clouded by noise that push prices up and down. In order to make long-term investments in the space the trick is to boil it down to the bare bones of …

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High Yield versus Equities

Investors are often led down the path that they must invest in equities in order to generate a decent return, and that the high yield market is too risky and speculative.  However, reality and the data points prove otherwise.  Looking …

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A Perspective on High Yield Spreads

There have been recent headlines about yields in the high-yield market hitting all-time lows.  Yes, this is true, but let’s put this in some context.  First, interest rates have been at or near all-time lows for years, pressuring yields in …

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