The post Fallen Angels Bonds Outperform High Yield Market in Q3 2025 appeared on BitcoinEthereumNews.com. James Ding Oct 13, 2025 19:49 In Q3 2025, fallen angels bonds outperformed the broader high yield market, supported by strong security selection and new entrants like Huntsman International. In the third quarter of 2025, fallen angels bonds have demonstrated remarkable performance, outpacing the broader high yield market. The success of these bonds was attributed to their longer duration and robust security selection, according to VanEck. New Entrants Bolster the Index The Fallen Angels Index saw the addition of four new entrants during this period, including notable names such as Huntsman International and WarnerMedia. These additions have contributed significantly to the index’s performance, reflecting strong fundamentals and sustained investor demand that is expected to support spreads into the fourth quarter. Impact of Economic Factors The performance of fallen angels has been influenced by the Federal Reserve’s interest rate cuts and ongoing trade tensions, which have shaped investor behavior and market conditions. Longer duration bonds have particularly benefited from these economic factors, providing an advantageous position for fallen angels within the high yield space. Understanding Fallen Angels Fallen angels are bonds that were initially issued with an investment-grade rating but have since been downgraded to junk status. Despite this downgrade, these bonds can offer attractive opportunities for investors due to their potential for recovery and higher yields compared to other high yield securities. Risks and Considerations Investing in fallen angels and high yield bonds generally involves substantial risk, including the potential loss of principal. These securities are more sensitive to adverse economic changes compared to higher-rated securities. Investors are advised to consider the risks, charges, and expenses associated with these investments carefully. As the market continues to evolve, the performance of fallen angels will likely be closely monitored by investors seeking high-yield opportunities… The post Fallen Angels Bonds Outperform High Yield Market in Q3 2025 appeared on BitcoinEthereumNews.com. James Ding Oct 13, 2025 19:49 In Q3 2025, fallen angels bonds outperformed the broader high yield market, supported by strong security selection and new entrants like Huntsman International. In the third quarter of 2025, fallen angels bonds have demonstrated remarkable performance, outpacing the broader high yield market. The success of these bonds was attributed to their longer duration and robust security selection, according to VanEck. New Entrants Bolster the Index The Fallen Angels Index saw the addition of four new entrants during this period, including notable names such as Huntsman International and WarnerMedia. These additions have contributed significantly to the index’s performance, reflecting strong fundamentals and sustained investor demand that is expected to support spreads into the fourth quarter. Impact of Economic Factors The performance of fallen angels has been influenced by the Federal Reserve’s interest rate cuts and ongoing trade tensions, which have shaped investor behavior and market conditions. Longer duration bonds have particularly benefited from these economic factors, providing an advantageous position for fallen angels within the high yield space. Understanding Fallen Angels Fallen angels are bonds that were initially issued with an investment-grade rating but have since been downgraded to junk status. Despite this downgrade, these bonds can offer attractive opportunities for investors due to their potential for recovery and higher yields compared to other high yield securities. Risks and Considerations Investing in fallen angels and high yield bonds generally involves substantial risk, including the potential loss of principal. These securities are more sensitive to adverse economic changes compared to higher-rated securities. Investors are advised to consider the risks, charges, and expenses associated with these investments carefully. As the market continues to evolve, the performance of fallen angels will likely be closely monitored by investors seeking high-yield opportunities…

Fallen Angels Bonds Outperform High Yield Market in Q3 2025



James Ding
Oct 13, 2025 19:49

In Q3 2025, fallen angels bonds outperformed the broader high yield market, supported by strong security selection and new entrants like Huntsman International.





In the third quarter of 2025, fallen angels bonds have demonstrated remarkable performance, outpacing the broader high yield market. The success of these bonds was attributed to their longer duration and robust security selection, according to VanEck.

New Entrants Bolster the Index

The Fallen Angels Index saw the addition of four new entrants during this period, including notable names such as Huntsman International and WarnerMedia. These additions have contributed significantly to the index’s performance, reflecting strong fundamentals and sustained investor demand that is expected to support spreads into the fourth quarter.

Impact of Economic Factors

The performance of fallen angels has been influenced by the Federal Reserve’s interest rate cuts and ongoing trade tensions, which have shaped investor behavior and market conditions. Longer duration bonds have particularly benefited from these economic factors, providing an advantageous position for fallen angels within the high yield space.

Understanding Fallen Angels

Fallen angels are bonds that were initially issued with an investment-grade rating but have since been downgraded to junk status. Despite this downgrade, these bonds can offer attractive opportunities for investors due to their potential for recovery and higher yields compared to other high yield securities.

Risks and Considerations

Investing in fallen angels and high yield bonds generally involves substantial risk, including the potential loss of principal. These securities are more sensitive to adverse economic changes compared to higher-rated securities. Investors are advised to consider the risks, charges, and expenses associated with these investments carefully.

As the market continues to evolve, the performance of fallen angels will likely be closely monitored by investors seeking high-yield opportunities amidst a complex economic landscape.

Image source: Shutterstock


Source: https://blockchain.news/news/fallen-angels-bonds-outperform-high-yield-market-q3-2025

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