Attractive Setup In Fallen Angels: 7% Yield And New Downgrades

VanEck5.26K FollowersFollow5ShareSavePlay(21min)CommentsSummaryWider spreads have driven fallen angel yields above 7%, their highest levels since mid-2025. Yields versus broad high yield have narrowed significantly, with ANGL, yielding 6.73%*.Two large fallen angels entered the index in Q1 2026: Paramount and FS KKR, together adding more than 15% in market value and reshaping sector exposure.Fallen angels underperformed high yield by 0.76% in Q1 2026, as geopolitical-driven spread widening in March erased gains built through February. niphon/iStock via Getty Images Two large fallen angels entered the index in Q1, including Paramount at 10% weight. Yields back above 7% and a historically wide price discount may signal a compelling entry point. Fallen angels underperformed the broadThis article was written byVanEck5.26K FollowersFollowVanEck is a global asset management firm offering ETFs, mutual funds, private funds, model portfolios, institutional strategies, separately managed accounts, as well as UCITS funds. Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission. VanEck has a long history of looking beyond financial markets to spot trends that create meaningful investment opportunities. We were one of the first U.S. asset managers to give investors access to international markets, which set the tone for identifying asset classes and themes such as gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 that later helped shape the investment industry. The firm oversees $161.7 billion in assets as of September 30, 2025. Disclosures: http://ow.ly/SZ9450N5qTJ.