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

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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

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