Category Archives: Peritus

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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Time for an Allocation

The size of the U.S. dollar high yield bond and loan market is over $3 trillion,1 representing nearly 30% of the corporate credit markets.2 There is an incredible size and depth of these high yield bond and loan markets, yet …

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Peritus Investor’s Manual

At Peritus we run actively managed portfolios of high yield debt. Our primary goal is to provide investors with a high current income, as well as the potential for capital appreciation. In addition to investing in the high yield bond …

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High Yield in a Rising Rate Environment: A Perspective on Historical Performance

We spoke last week about some of the reasons high yield bonds have historically performed well in rising rate environments, including the following: Higher coupons and yields in the high yield space help cushion the impact of rising interest rates. …

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