US bond buyers see rising stars

摘要

US corporate bond investors are hopeful that a recovering US economy will help some of the biggest names in the high-yield universe boost their credit ratings to become "rising stars", marking a swift turnaround after 2020 saw an influx of "fallen angels" dropping from investment grade to junk. Recent earnings reports indicate many stronger rated high-yield names are setting their sights on investment-grade status by focusing on debt reduction and earnings growth, underscoring the turnaround in credit markets since the Federal Reserve had to step in last March to cushion the blow from a wave of fallen angels.