Category Archives: Peritus

Too Far Too Fast?

We have seen a pretty sizable bounce back in the high yield market off of its February 11th lows, with spreads declining and prices rising.1 This leads to the question, have we come too far too fast?  We believe that …

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High Yield Market Technicals: The New Issue Market

We continued to see the broader high yield market rebound in April after hitting multi-year lows in mid-February, despite bankruptcies accelerating as we had expected. Looking at market technicals, as we have seen buyers and interest come back into the …

Posted in Peritus

High Yield Investing: Risk and Outcomes

We have been active in the credit markets for decades and we see the primary risk for credit investors is default.  While interest rates play a role in all asset classes, they historically have a very limited effect on a …

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The Selective Energy Opportunity

After working to sizably cut our energy allocation in early 2015 as we expected the volatility in oil to continue, we are now selectively adding a few energy names to our portfolio.  Since we have been clanging gongs for a …

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High Yield Market Fundamentals

As we look at the high yield market, we see decent market fundamentals.  While it would be a normal occurrence to see companies re-lever themselves after six years into a cycle, we have seen little of this type of bad …

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US Financial Markets: Demographics and the Income Opportunity

We are in the midst of a global shift in demographics as the Baby Boom generation ages and faces retirement, causing a need for reduced volatility in their investments.  We believe this creates real issues for future money flows.  We …

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High Yield Bond Investing: Understanding Yield and Default Rates

We’ve always viewed default risk as one of the primary risks in high yield investing.  Unlike stocks, bonds have an end date and value via their maturity date and maturity price of par.  There may be a lot of price …

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US Financial Markets: Fundamentals and the Outlook for Equities

The US dollar and bond markets will continue to benefit from a flight to quality trade keeping rates much lower than expected by many.  However, this is not because we see the US economy performing exceptionally well; rather, just less …

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Strategy Adjustments: Sell Discipline

As we noted last week, we have made some strategy adjustments as we work to help improve liquidity and dampen volatility.  Along those lines, we have implemented a sell discipline.  While as active managers we are always monitoring our holdings …

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Strategy Adjustments: New Issue Allocation

Investing is a dynamic process and managers must adjust to the market in which they find themselves.  We have done just that with some recent strategy adjustments.  To address the liquidity issues and concerns within the high yield market, we …

Posted in Peritus