Category Archives: Peritus

Revisiting “Hedged” High Yield

We have written in the past about some of the concerns we had the with “hedged high yield” strategy (see our blog), whereby investors go long high yield bonds and short Treasuries (or Treasury futures).   As we noted in our …

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Why High Yield, Why Now

Here are some of the reasons we believe that the high yield bond market looks attractive at current levels: MODERATE RISK:  With default being the primary risk for high yield bonds and bank loan investing, we see no systemic default …

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Market Conditions and Investment Strategy

Markets are funny beasts. Efficient? Perhaps. Manic? Always. What has been going on since everyone came back from the beach is quite simple: risk off. There has been a quiet but vicious downdraft in both credit and small cap equities …

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High Yield Market Technicals

It has been a long quiet period in credit but volatility has returned with a vengeance. I have had an opportunity to discuss this with a number of our institutional clients in recent days, but there are a few factors …

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Oil Market Dynamics

Oil is down the most in 22 months today. Brent Crude fell more on the day than West Texas Intermediate (WTI) and it primarily comes back to the unexpected supply increases out of Libya (being at the highest level in …

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A Look at Concerns Impacting the High Yield Market

Be it interest rate concerns or talk of a bond bubble, the high yield market has faced a step back over the past couple weeks. We’ve addressed the interest rate concerns at length—see our piece “Strategies for Investing in a …

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Duration-Based Investing: Yield Matters

It would be hard to have missed the call in the fixed income space for “short duration” products over the last year.  Duration is a measure of interest rate sensitivity (the percentage change in the price of a bond for …

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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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