Category Archives: Peritus

The Origin and Growth of the High Yield Market

Most investors place the origins of the high yield market in the late 1970s, which would not necessarily be wrong if by the high yield market we mean “original issue” high yield. Truthfully, high yield lending has been going on …

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High Yield in a Rising Rate Environment

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Irrational Oil Markets

“Markets can remain irrational longer than you can remain solvent,” John Maynard Keynes We would think if Mr. Keynes was alive today, he would certainly apply his famous quote to today’s oil markets. After collapsing almost 50% during the last …

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Definition of High Yield

Just what is the formal definition of high yield? High yield, or its more polite acronym, non-investment grade, is based off of the ratings grids provided by the two major credit rating agencies, Moody’s and Standard & Poor’s. All bonds …

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Overview of the Fixed Income Market

As we look at the high yield bond market, it is important to have an understanding of the fixed income marketplace and the investment options within it. The first thing to note is the sheer size, which is massive (just …

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High Yield Bond Investing: The Opportunity in Volatility

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The New Case for High Yield

Throughout its nearly 35 year history, the high yield market has often been viewed as a confusing or an alternative asset class.  However, the reality is that this is a large, developed and liquid asset class.  We have provided this …

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Interest Rates and Bonds

So at long last we know whether the word “patient” stays or goes: it’s gone and Treasury yields have actually declined as a result. So far this year we have seen rates go from a 2015 low of 1.19% on …

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The State of Global Energy Markets

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The High Yield Default Outlook

We see default risk as the most prominent risk for credit investors.  As we look forward, a benign default environment is projected over the next few years.1 Broadly speaking, this projection does make sense to us.  Some of the triggers …

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