Debt investors seen bracing for “fallen angels”

A wave of “fallen angel” bonds – those issued by investment-grade companies that have since been downgraded to junk status – has started to break amid the coronavirus outbreak, and more are expected in the coming months. The impact will be painful for institutional investors, especially insurance firms, though they can take action to soften the blow, say experts.   A key issue is that far more bonds are now sitting in the lowest tier of invest-grade ratings than a decade ago. As…