The fallen angel opportunity as previously strong credits suffer

Downgrades set to break records

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About $323bn of debt was downgraded over the first six months of the year
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About $323bn of debt was downgraded over the first six months of the year

As a result of the severe economic dislocation caused by the Covid-19 pandemic, the downgrade of 'fallen angels' to high yield status in 2020 is set to rocket past the previous yearly record.

As a result of the severe economic dislocation caused by the Covid-19 pandemic, the downgrade of 'fallen angels' to high yield status in 2020 is set to rocket past the previous yearly record. About $323bn of debt was downgraded over the first six months of the year, according to S&P Global Ratings, which is set to eclipse the previous record of almost $488bn in 2005. In the gallery above, four investors discuss fallen angels and highlight whether these challenged credits offer value in the continuing uncertain environment.

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