Category Archives: Peritus

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 …

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Zero Sum Game

As we close out the first quarter of 2016, investors reading the tea leaves should be concerned.  The price collapse in almost all commodities and the recent severe indigestion in US credit markets reject the notion that the global economy …

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High Yield Market Technicals

As we start to see the high yield market gain some footing, it is important to note the improved market technicals, mainly fund flows and primary market issuance. For the week ending March 16th, we saw high yield retail funds …

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“Risk” in High Yield Relative to Equities

We’ve written about this topic before but feel it is worth revising given some of the rhetoric we hear by the financial pundits today as they discuss “risky” securities. Some seem to classify high yield bonds as “risky” but don’t …

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