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Click here to open the white paper as a PDF document

High yield braces for fallen angels


Last year, we released a paper about the rise of ‘zombie’ companies since the financial crisis - firms that show little signs of life but manage to survive thanks to cheap borrowing costs. At the time, many zombies were rated as investment grade quality, although most were positioned on the lowest rung in this category (BBB).
 

With a recession now upon us, many zombies are at risk of being downgraded into high yield and becoming fallen angels. In this white paper we consider the significant implications for the global high yield market and analyse the sectors most at risk of downgrades.

Click here to open the white paper as a PDF document

Martin Dropkin

Martin Dropkin

Global Head of Research, Fixed Income

George Watson

George Watson

Investment Writer