Fallen angels — Have you heard of them?

  • Market analysts expect USD200–250bn worth of “fallen angels” in the US in 2020, representing 3.5–3.7% of investment-grade debt, more than the record USD100bn downgraded in 2005
  • Over USD300bn worth of global debt was relegated to the fallen angel category by end-May 2020, with 30 issuers downgraded in the first five months of the year (six in May 2020)
  • Fallen angels have outperformed the broader HY bond market by approximately 4.0 percentage points annually over the past two decades

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/