RLAM's Hussain welcomes flood of fallen angels with energy sector high yield investments

Better results from investing 'blindly'

Investing "blindly" in fallen angel high yield credits would have yielded better results than traditional high yield investing, according to head of global high yield at Royal London Asset Management Azhar Hussain, who has been selectively adding to recently downgraded names in the energy sector amid the ongoing coronavirus crisis.

Hussain, who noted that investors should "always be selective when buying" and to buy anything blindly is "never a great thing", explained that widespread credit rating downgrades since the start of the year has presented opportunities for the £2.2bn AUM Royal London Global High Yield Bond fund. PGIM Investments launches global corporate ESG bond fund He explained: "Historically, the data shows that if you blindly buy fallen angels, you would have probably done better than regular high yield market investing. "Most of these companies that get downgraded are quite different from the...