Fallen angels: The new high-yield bonds

This kind of providers and their bonds are known as “fallen angels,” reflecting their descent from the grace of investment-grade to large-produce status. Their emergence generates bigger financing expenditures for the issuers, improvements in the composition of indexes and the resources that search for to keep track of them, issues for large-produce markets that will need to take up them, and alternatives for active resources.

“Although a downgrade represents an increased possibility of default, if issuers can arrest some of the business pressures they facial area, fallen angels can finish up currently being reasonably large-quality bonds that all people in

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