Category Archives: Peritus

Energy Market Update

Access to and pricing of energy in all forms matter immensely to consumers, markets and economies. Prices of electricity, gasoline, diesel and jet fuel are directly affected by oil prices and impact all consumers. We have seen the pricing on …

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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 …

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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 …

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Time for an Allocation

The size of the U.S. dollar high yield bond and loan market is over $3 trillion,1 representing nearly 30% of the corporate credit markets.2 There is an incredible size and depth of these high yield bond and loan markets, yet …

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Peritus Investor’s Manual

At Peritus we run actively managed portfolios of high yield debt. Our primary goal is to provide investors with a high current income, as well as the potential for capital appreciation. In addition to investing in the high yield bond …

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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. …

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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 …

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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 …

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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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