Fallen angels outperformed broad high yield by 1.23% in Q2 2026 (3.69% vs. 2.46%), recovering the YTD lead to +0.44%. Paramount and FS KRR contribute to strong Q2 performance. Fallen angel yields of 6 ...

The positive momentum gained by fallen angels in the final quarter of 2023 carried over into January, surpassing broad high yield by 56bps. Sector-specific weakness may continue to manifest in ...

2024 returns will likely be driven by carry, with sector and quality differences driving potential outperformance versus broad high yield. An uptick in fallen angels may provide further support. Last, ...

Fallen angels are bonds downgraded from investment grade to high yield, often creating forced selling and potential credit dislocations. Historical data shows fallen angels can recover after downgrade ...