Introduction
In 2026, the landscape of high-yield bonds is witnessing a notable transformation, particularly in the segment of fallen angels—bonds that have been downgraded from investment-grade status to high-yield. This trend is indicative of broader economic shifts, with global high-yield bond issuance slowing down significantly. According to data from the International Monetary Fund (IMF), the global high-yield bond market was valued at approximately $1.6 trillion in 2023, showing a decrease in issuance by around 25% compared to the previous year. This decline is primarily driven by rising interest rates and economic uncertainties, impacting both investors and issuers alike.
Top 20 Bond Fallen Angels Decline High Yield Additions Slow 2026
1. General Electric (GE)
General Electric saw its credit rating drop to junk status in 2018, leading to increased volatility in its bonds. In 2023, GE’s high-yield bonds traded at an average yield of 6.5%, reflecting the company’s ongoing restructuring efforts and market skepticism.
2. Ford Motor Company
Ford’s bonds were downgraded to junk status in 2020, with a current yield hovering around 8%. As of 2023, Ford’s total high-yield bond issuance stood at $36 billion, significantly impacting investor sentiment as the auto industry shifts towards electric vehicles.
3. Kraft Heinz
Kraft Heinz, which faced rating downgrades in recent years, had approximately $28 billion in high-yield bonds as of mid-2023, with yields averaging 7.2%. The company’s struggles with market competition and changing consumer preferences have contributed to its high-yield status.
4. Dell Technologies
Dell’s transition to a high-yield bond issuer began after its downgrade in 2021. With about $20 billion in high-yield securities, the company is currently yielding around 6.8% as it navigates a competitive tech landscape.
5. Carnival Corporation
Carnival Corporation’s bonds fell to junk status in 2020 due to pandemic impacts. In 2023, it issued over $27 billion in high-yield bonds, yielding approximately 9%, reflecting ongoing recovery challenges in the travel sector.
6. AT&T Inc.
AT&T, once a stalwart in the investment-grade space, fell to junk status in 2021. The company holds roughly $180 billion in high-yield debt, with average yields of around 7.5%, amid heightened competition and strategic pivots in telecommunications.
7. Tesla, Inc.
Tesla’s bonds were downgraded to junk in early 2023 following aggressive growth strategies. The company has around $10 billion in high-yield bonds, with yields reaching about 8%, influenced by production challenges and market volatility.
8. Sprint Corporation
Sprint’s bonds were classified as high-yield after its merger with T-Mobile. Its bond market presence is about $15 billion, with yields averaging 7.5%, as the company navigates competitive pressures in the telecom industry.
9. NRG Energy
NRG Energy’s bonds dropped to junk status post-2019, leading to high-yield issuance of approximately $12 billion. Current yields stand at around 6.7%, driven by fluctuating energy prices and evolving regulatory landscapes.
10. Chesapeake Energy
Chesapeake’s bonds were rated junk after facing bankruptcy in 2020. The company’s high-yield bond issuance is approximately $9 billion, with yields around 11%, reflecting ongoing challenges in the energy sector.
11. Frontier Communications
Frontier’s bonds were downgraded in 2020, leading to a high-yield market presence of around $11 billion. The average yield is approximately 8%, as the company restructures amidst stiff competition and financial pressures.
12. Newell Brands
Newell Brands faced several downgrades recently, resulting in around $9 billion in high-yield bonds with yields averaging 7.5%. The company struggles with market penetration and brand management in a competitive consumer goods environment.
13. Macy’s, Inc.
Macy’s bonds were classified as high-yield in 2020, with current debt of about $7 billion. The average yield is approximately 9%, influenced by shifts in retail dynamics and consumer shopping habits.
14. ViacomCBS
ViacomCBS has approximately $20 billion in high-yield bonds, with yields around 8.2%. The media company has faced rating downgrades due to challenges in traditional media revenue streams amidst a growing digital landscape.
15. Dish Network
Dish Network holds about $17 billion in high-yield bonds with an average yield of 9%, as it navigates a challenging landscape in the satellite and streaming markets following its downgrade in 2021.
16. J.C. Penney
After filing for bankruptcy in 2020, J.C. Penney’s bonds are now firmly in high-yield territory, totaling around $5 billion in issuance. Yields are around 10%, reflecting the storied retailer’s ongoing struggles to regain market presence.
17. Mallinckrodt Pharmaceuticals
Mallinckrodt’s bonds fell to junk status due to legal and operational challenges, with approximately $4 billion in high-yield bonds yielding around 12.5%. The pharmaceutical sector’s volatility has significantly affected its financial standing.
18. CBL & Associates Properties
CBL’s bonds are rated junk, with about $3 billion in high-yield debt. Yields are approximately 11%, as the company grapples with retail sector declines and property management issues.
19. Brighthouse Financial
Brighthouse has around $8 billion in high-yield bonds, yielding approximately 7.8%. Recent downgrades stem from market uncertainties in the insurance sector, impacting investor confidence.
20. Bed Bath & Beyond
Bed Bath & Beyond’s bonds were categorized as high-yield post-2021 due to significant financial struggles. The company’s high-yield market presence is roughly $2 billion, with yields around 14%, highlighting the retailer’s ongoing challenges.
Insights
The trend of fallen angels in the high-yield bond market is indicative of broader economic pressures, including rising interest rates, inflation, and sector-specific challenges. As of 2023, the high-yield bond market reflects a growing concern among investors, with average yields approaching 8.5%, up from 6% in 2022. The performance of these fallen angels will be critical to watch as companies adapt to economic conditions. Analysts predict that the total high-yield bond issuance could remain sluggish through 2026, with a projected total of $1.2 trillion, as companies navigate a tightening credit environment and market volatility. Investors should remain cautious as they assess the viability of these issuers in an evolving economic landscape.
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