Category Archives: Peritus

The Election Impact on High Yield: Rates and Regulation, Interest Rates and the Economic Outlook

Now that Donald Trump has surprised virtually everyone with his Presidential victory, what does that mean for the high yield market?  For us, it looks like the most relevant impacts are interest rates, taxes, and regulations. First, let’s look at …

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The Election Impact on the High Yield Market: Rates and Regulation

Now that Donald Trump has surprised virtually everyone with his Presidential victory, what does that mean for the high yield market? For us, it looks like the most relevant impacts are interest rates, taxes, and regulations.  We are already starting …

Posted in Peritus

The Technical Piece of Active Management

Over the years we have spent a great deal of time discussing fundamental analysis and how important we believe it is in high yield investing.  Fundamental analysis—digging into a company, understanding what they do, and evaluating the future outlook for …

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Bond versus Equity: Capital Structure Positioning Matters

In our writings, we have often posed high yield bonds as an equity alternative.  Over the last couple decades, these two asset classes have had similar return profiles.1 However, as we have often noted, high yield bonds have historically had …

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A Place for Active Management

Be it how hedge fund returns have been struggling over the past year or how index funds have been gaining some traction, there has seemed to be much in the financial media over the past few weeks about the challenges …

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Is It Really that “Smart” or “Strategic”?

“Smart” or “strategic” beta.  The name sounds enticing; as an investor of course we all want to be smart and strategic.  In the ETF world, we’ve seen a number of “smart beta”/”strategic beta” funds recently launched.  These funds are positioned …

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Investing by Duration

With all of the talk of the Federal Reserve taking action and raising rates in the next couple months, investors naturally are considering how they position their portfolios. Duration is one metric fixed income investors often pay attention to as …

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High Yield in a Rising Rate Environment

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Volatility Within the High Yield Market

In our conversations with investors and advisors, we sometimes hear concerns about volatility within the high yield sector expressed.  People seem to be okay with equities but aren’t sure if the high yield market is too volatile for them—seemingly under …

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High Yield Market Conditions

As we all know, the Fed held rates steady last week and while they kept the door open for a December rate hike, they certainly didn’t indicate it is a foregone conclusion.  There are a number of important data points …

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