Category Archives: Peritus

Closed End Funds versus Exchange Traded Funds

There are currently a number of fund-based options available to investors looking for yield. In addition to traditional open-ended mutual funds, investors are also turning toward closed end funds (CEFs) and exchange traded funds (ETFs) to generate yield, including in …

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No Bubble Here

We often hear the word “bubble” thrown around when people are taking about various financial markets, asset classes, and sectors. But just what does the word really mean? In looking at the various definitions of an economic or speculative “bubble” …

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Market Repricing: What Has Changed?

We have seen extreme volatility over the past week, with a precipitous fall and rebound for equities. It is often said that the bond markets lead the way, and over the last month or so, we have seen spreads widen …

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What Value are Credit Ratings?

If there was any question about it, the financial crisis of 2008 demonstrated to us all just how flawed the ratings process is, where AAA debt was suddenly in default and highly rated companies all of a sudden required bailouts …

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Why This is Not 2002 or 2009

Over the last 20 years, there have been two major default cycles. One in 2001/2002 and another in 2009.1 There have been apprehensions that today’s energy market issues will cause another major default cycle for the broad high yield market, …

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High Yield ETFs: Market Size, Money Flows, and Liquidity

The entire U.S. fixed income market (municipals, Treasuries, mortgages, corporates, federal agency bonds, money market, and asset back securities) totals $39.2 trillion.1 Of this, corporate credit is about $8 trillion. The high yield bond market is a growing piece of …

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High Yield Default Outlook

With the energy markets once again taking a turn downward, we are seeing concern for the high yield market again escalating and talk of a spike in default rates heating up.  Yes, the energy industry does make up a large …

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The High Yield Market: An Opportunity for Active, Long-Term Investors

It has been a tumultuous couple months in the high yield market. Since the first of June, we’ve seen spreads in the high yield market widen 75bps, putting them now solidly above historical median levels.1 We are also now sitting …

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Mid-Year Update

In like a lamb, out like a lion seems to be an accurate description of the first half of 2015. As we sit in the second week of July, Greece and China have changed investor psychology (risk-off). The overall deflationary …

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Actively Navigating Energy Markets

We, like the vast majority, were surprised by the swiftness and severity of the decline in oil prices in late 2014 and into early 2015. As we re-evaluated our holdings several months ago at the oil pricing reality in the …

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