Industry Voice: Fallen angels can improve a high-yield allocation.

Lombard Odier explore how these bonds can be used to add convexity, and enhance ratings and risk-adjusted returns

clock • 1 min read
Industry Voice: Fallen angels can improve a high-yield allocation.

Are you making the most of fallen-angel bonds in your high-yield strategy?

Increasing an allocation to fallen angels tends to improve the risk-adjusted performance potential of a high-yield portfolio. That's because fallen angels can enhance yields without moving lower in credit ratings.

They can also add convexity: fallen angels tend to outperform other high-yield bonds in an economic recovery but fall less in a negative credit market.

Learn more about why fallen angels stand out in high yield space by clicking on the link below.

 

This post is funded by Lombard Odier

Advertisement

More on Bonds

Register now for IW Fixed Income Market Focus event on 13 March

Register now for IW Fixed Income Market Focus event on 13 March

Get the expert view on the outlook for bond investors

Investment Week
clock 16 January 2025 • 1 min read
Coutts and JP Morgan fund updates investment policy to access catastrophe bonds

Coutts and JP Morgan fund updates investment policy to access catastrophe bonds

Following fund launch in May

Linus Uhlig
clock 18 December 2024 • 2 min read
Aegon AM's Iain Buckle: It is beginning to look a lot like 2024

Aegon AM's Iain Buckle: It is beginning to look a lot like 2024

Bond markets in 2025

Iain Buckle
clock 06 December 2024 • 4 min read
Trustpilot