Category Archives: Peritus

Crimea: Why Here and Why Now?

In an effort to explain the annexation of Crimea, there has been a great deal of coverage surrounding the region’s ethnic ties with Russia and the political motivations of the move. After all, it was only 60 years ago that …

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The Default Outlook

On April 1st, TXU/Energy Future Holdings skipped their interest payment due that day, immediately triggering a default by some reporting mechanisms. While the company has a 30 day grace period to pay the coupon payment, most expect them to use …

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Avoiding Complacency

According to Lipper, $3.4 billion has gone into U.S. high yield mutual funds and exchange trade funds in Q1 2014, well above last year’s first quarter inflows of $1.76 billion.1  We have seen a very stable new issue market over …

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A Revised Timeline for a Rate Increases, Should We Be Worried?

Earlier this week we heard the results of the latest Fed meeting.  To little surprise, they continued with the “tapering” of $10 billion a month.  However, the clarity Yellen offered as to likely finishing up the latest round of quantitative …

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Repricing and Refinancings in Bank Loans: A Case Study

On the back of interest rate concerns, we have seen a massive interest in the floating rate loan space, with an astounding 91 consecutive weeks of inflows into loan exchange traded and mutual funds, and last week we saw among …

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A Look So Far…Caution Remains

In early January, we put out our outlook for 2014 (see our piece “Of Elephants and Rates”).  So far, things are turning out about as we expected.  Looking at a few of our specific takes: Interest Rates:  We had expected …

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Cracks in the Shale Oil Story

It’s not as easy as sticking a straw in the ground… Are cracks starting to appear in the illusion that is the shale oil “revolution”? It seems that one such crack may have appeared yesterday as Forest Oil Corporation (FST) …

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Lessons from TXU

The chatter has started again about a looming bankruptcy for Energy Future Holdings (the former TXU), as headlines have emerged that the company is seeking a $4 billion loan to fund them through the bankruptcy process.  We saw this day …

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Sovereign Debt Markets: Are Investors Being Compensated for Risk?

Yesterday I was reading an article about Portugal issuing bonds this week and this issuance was seen as a big step forward in terms of the country potentially emerging from their bailout over the coming months.  Great for Portugal…but then …

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Time to be Selective

Each market has their cycles and aspects investors should be aware of.  As we sit here today in the high yield market, we certainly do not see it as a massively over-valued space.  Spreads are still within range of historical …

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