Industry fears market turbulence will lead to surge in 'fallen angels'

Concerns surrounding an increase in 'fallen angels' have ramped up amid the recent market turbulence, according to fixed income investors, who warn that debt at the lower end of the investment-grade spectrum is most vulnerable to being downgraded and relegated to the high-yield market.

The combination of the Covid-19 crisis and plummeting oil prices have rattled markets and are driving the global economy towards a recession. While the US Federal Reserve's unprecedented move last month...