The Fallen-Angel ETF That's Flying High

The video discusses the concept of fallen angels, which are corporate bonds that were once investment grade but have been downgraded to high yield. The demand for fallen angel ETFs has surged, particularly for funds like Black Rock's and Van Excellent's, as part of a broader market rotation. When bonds are downgraded to junk status, they often experience mechanical selling but tend to outperform in subsequent months. The video highlights Carnival Corporation as a significant holding in these funds, benefiting from the market's return to normalcy.

What are fallen angels in the context of corporate bonds?

What impact did the coronavirus have on the fallen angel market?

How has the demand for fallen angel ETFs changed recently?

Explain the relationship between bond downgrades and market performance.

What is the significance of Carnival Corporation in the context of fallen angels?