Yields
Yesterday Monsanto issued $250mm in 30-year bonds at a yield of just 3.608%. This is a mere 1% over the 30-year Treasury yield and is a record low issuance yield. That is sub 4% to tie up your money...
View ArticleGravity
As we head into the last two weeks of August, I have been amazed at the incredible activity in the credit markets. Both investment grade and high yield issuance has seen record numbers for the usually...
View ArticleSize Constraints in the Passive ETF World
The high yield bond exchange traded fund market is dominated by two large ETF. However, if you look into the policy statements of these ETFs, they have size constraints that severely hinder their...
View ArticleThe Equity Euphoria Fades
Last night Caterpillar lowered their outlook through 2015 as this massive bellwether is witnessing a global slowdown. China is undoubtedly slowing and is likely going to end up with growth in the low...
View ArticleDeficiencies of Credit Ratings
Earlier this week the Securities and Exchange Commission released the summary of their annual review of the rating agencies. Among the deficiencies discussed, the SEC found that the ratings agencies...
View ArticleRisks in Credit
We have had the benefit of living through every cycle in the high yield market since inception in 1984. Extremely large moves to the downside occurred in 1990, 2002 and 2008. All of these periods...
View ArticleRecent Writings – State of Disarray: Oil Markets, Keystone, and the Beginning...
I have been an investor in the energy space for over 25 years. Outside of interest rates, I don’t believe there is anything that dominates the global economy more than oil prices. It is a product...
View ArticleSelective Amnesia
NBTY returns to market with $1.5B cov-lite refinancing TL A little over a month after withdrawing its repricing proposal, reverse inquiry has spurred NBTY to approach the market to refinance its...
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What Does the Breakdown in Copper Tell Us?
I am a believer of regression to the mean. I don’t believe it’s a theory, but a law. Stocks and bonds possess values as measured by P/E ratios and spreads. Measured over very long time periods, we...
View ArticleAlpha Defined
I had an opportunity to discuss the state of the high yield bond market yesterday with Joe Light, of the Wall Street Journal, and Brian Kinney, global head of fixed income beta solutions for State...
View ArticleTapping into Tapering
Click here to view our most recent writing, “Tapping into Tapering.” It’s been quite a couple of weeks. So where to from here and what are investors to do? Our summary and conclusions are as...
View ArticleThe Opportunity in Canadian Oil
We have been a believer in the opportunity in Canadian oil (see our piece “State of Disarray: Oil Markets, Keystone, and the Beginning of the End”). In case anyone missed it, oil (measured by WTI, or...
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Gambling or Yield
As we look at the equity market today, we can’t help but liken it to a “Ponzi” or a pyramid scheme. Let’s look at Netflix, the number one performer in the S&P this year. It trades for 140 times...
View ArticleThe Oil Reality
Today we saw oil hit a two-year high, with West Texas Intermediate (WTI crude, a measure of domestic oil) now trading over $109. The move today was blamed on concerns about the U.S. involvement in...
View ArticleThe New Core Fixed Income
At Peritus, we view ourselves as are original thinkers, not buying into the latest market fad or embracing the Wall Street propaganda, and often have a massively contrarian view of markets. We don’t...
View ArticleWe’re From the Government and We’re Here to Help
WOW. That’s about the only word I can actually come up with today. The Fed decides to keep the crack pipe lit and equities rally hard. Really? Here are my thoughts: We’re From the Government and...
View ArticleEnergy Markets and Old King Coal
Our portfolio tends to be pretty eclectic as we look for what we see as the best investment opportunities, however we have often have specific industry themes within the portfolio. Currently one of...
View ArticleOf Elephants and Rates
As we enter 2014, we see several themes. The economic consensus appears to believe that the “recovery” is in the beginning stages and the global all clear sirens have sounded. This does not pass our...
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Demographics and Rates
A prevalent thought seems to be that we are in the midst of a “great rotation” from bonds into stocks, which will continue to propel stock prices higher. This is a great theory and makes for nice...
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Overview of the Fixed Income Market
“Junk bonds” are often still considered an alternative asset class and remain tremendously confusing to much of the investing public. They are considered by many to be very risky and illiquid. The...
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