El-Erian Sees 'Fallen Angels' as Biggest Follow-the-Fed Risk

The video discusses the Federal Reserve's influence on the investment grade market, highlighting the risks of credit downgrades and the emergence of 'fallen angels.' It examines the current market success, with increased issuance in both investment grade and high yield markets, and the potential risks involved. The roles of the Fed, companies, and investors are analyzed, emphasizing the importance of understanding different market segments and the limitations of generalizing trends across asset classes.

What are the potential risks associated with the Fed's strategy of supporting the investment grade market?

Explain the concept of 'fallen angels' in the context of investment grade names.

How has the recent trend in downgrades by rating agencies impacted the market?

What factors should investors consider when evaluating the stability of the credit market?

Discuss the implications of the Fed's support for certain market segments and not others.