Category Archives: Peritus

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 …

Posted in Peritus

The State of Global Energy Markets

Posted in Peritus

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 …

Posted in Peritus

Today’s Floating Rate Loan Market

Together the high yield bond and floating rate bank loan market total over $3 trillion.1 This has evolved into a significant, and growing asset class. With high yield bonds and loans now representing about 30% of corporate credit2, this market …

Posted in Peritus

High Yield in a Rising Rate Environment: Duration and Yield

We began February with a yield on the 10-year Treasury of 1.68% and today sit at 2.14%.1 All the concerns and talk of maybe even no rate rise this year that we saw in January, have turned to frequent mention …

Posted in Peritus

Alpha Generation for Active Managers

As we discussed in our recent blog (see “The Opportunity in Volatility”), we are currently seeing a lot of attractive opportunities in the high yield market—discounts and yields that we haven’t seen in some time.  And while we have seen …

Posted in Peritus

The Opportunity in Volatility

It seems the best way to sum up on the markets of late is with the word “volatile.”  We’ve seen surprise moves on the currency and interest rate front from the likes of Switzerland and Canada and the launch of …

Posted in Peritus

Canada’s Surprise Interest Rate Move

The Bank of Canada surprised markets today by cutting rates.  With a Federal election approaching, an argument could certainly be made for some political angling.  Regardless, the reaction of the Canadian dollar was swift and immediate, plunging almost 1.5 cents …

Posted in Peritus

High Yield Bonds versus Equities

Investors are often led down the path that they must invest in equities in order to generate a decent return, and that the high yield market is too risky and speculative.  However, reality and the data points suggest otherwise.  Looking …

Posted in Peritus

The Year Ahead: High Yield, Energy, and Interest Rates

2014 will go down as a year that was a “statistical champion” as both stocks (as measured by the S&P 500 and the Dow Industrials) and bonds (the more interest rate sensitive asset classes) had very good years. It was …

Posted in Peritus