In Q3 2025, fallen angels bonds surpassed the performance of the broader high yield market, benefiting from effective security selection and the introduction of new players. The strong performance of fallen angels can be attributed to careful selection of securities, which has proven advantageous in this market environment. Additionally, the entry of new issuers, including Huntsman International, has contributed positively to the overall dynamics of fallen angel bonds. Investors have increasingly turned to these bonds as they offer a compelling alternative in the high yield space. The combination of strong security selection and fresh entrants into the market has created a favorable landscape for fallen angels, allowing them to thrive amidst broader high yield market conditions.
