In this June 2025 fixed income insight, Pictet Asset Management highlights the investment potential of “fallen angels”—corporate bonds downgraded from investment grade to high yield—amid rising market stress and policy uncertainty.
-
Fallen angels typically offer excess returns of 0.5–2.0 percentage points within 12–24 months after downgrade, due to forced selling and spread mispricing.
-
European issuers are especially attractive, as trade tensions weigh more heavily on US credit and create relative value opportunities.
-
Selective positioning—focusing on fundamentals and avoiding the weakest quartile—can enhance performance while limiting downside.
Read the full report for data-driven insights into timing, selection, and risk mitigation in the high-yield credit space.
Om dit artikel te lezen heeft u een abonnement op Investment Officer nodig. Heeft u nog geen abonnement, klik op "Abonneren" voor de verschillende abonnementsregelingen.
