Fallen Angels: An Attractive Investment Opportunity with High Yields

Fallen angels, bonds downgraded from investment grade to high yield, are presenting an attractive investment opportunity. Their yields have surpassed 7%, reaching levels not seen since mid-2025. This, coupled with a significant narrowing of yields compared to the broader high-yield market, suggests a compelling entry point for investors. Recent additions to the index, such as Paramount and FS KKR, have also reshaped sector exposure, making the landscape even more dynamic.