investment viewpoints

    4 ways to maximise fallen angels’ potential

    4 ways to maximise fallen angels’ potential
    Anando Maitra, CFA - Head of Systematic Research

    Anando Maitra, CFA

    Head of Systematic Research
    Jamie Salt, CFA - Fixed Income Research Analyst

    Jamie Salt, CFA

    Fixed Income Research Analyst

    Need to know

    •    Investing in fallen angel bonds1 could prove an attractive proposition for investors, but active management is crucial to addressing heightened risk and optimising return potential. 

    •    Given the significant differences between fallen angel bonds, how does our fallen angels recovery strategy ensure the leading outperformance prospects but also avoid the pitfalls of a fallen angel dipping deeper into high yield ratings, or becoming a falling knife? 

    •    In the systematic aspect of our strategy, we aim to capture relative value by preferring: shorter and newer fallen angels, those with the most pronounced price over-reaction at downgrade, and those in the BB rating bucket.


    Please click on the tabs below to discover more about our active systematic tilts.  


    1 Fallen angel bonds have been downgraded from investment grade to high yield.

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