Invesco PowerShares enters fixed income ETF space in Europe

Launches US high yield 'Fallen Angels' ETF

Invesco PowerShares is making its first foray into fixed income ETFs for the European market with the launch of a US high yield 'Fallen Angels' product in partnership with Citi.

The new vehicle will be called PowerShares US High Yield Fallen Angels UCITS ETF, and will be a physically replicating Irish-domiciled fund tracking the Citi Time-Weighted US Fallen Angel Bond Select index. The index will seek to exploit a market anomaly whereby bonds that have been recently downgraded from investment grade to junk are oversold by investors, but often bounce back in a "V-shaped recovery". ETF roundup: All the major news from across the industry Bonds in the index have a minimum rating of C by S&P, and Ca by Moody's, and a maximum of BB+ and Ba1 respectively. A k...