Fallen-Angel Risk Builds as Investment-Grade Bonds Trade Like Junk

Credit markets are showing a growing pool of investment-grade bonds priced closer to speculative-grade risk, increasing the likelihood of a new wave of “fallen angels” if issuers are downgraded. Recent market analysis puts global fallen-angel volume at about $101 billion, while other credit research highlights widening dispersion among highly leveraged investment-grade borrowers. ([mandg.com](https://www.mandg.com/investments/institutional/en-gb/insights/2026/q2/mac-fi-hy-na-should-investors-worry?utm_source=openai))

Oracle is under scrutiny as it expands debt-funded artificial-intelligence infrastructure spending. The company plans to raise $45 billion to $50 billion during calendar 2026 through a combination of debt and equity, while maintaining an investment-grade balance sheet. Credit analysts have also pointed to sharply higher expected capital expenditure and projected free-cash-flow deficits as factors that could pressure its ratings. ([oracle.com](https://www.oracle.com/news/announcement/oracle-announces-equity-and-debt-financing-plan-2026-02-01/?utm_source=openai))

Stellantis faces a different set of pressures linked to its business transformation and earnings recovery. S&P Global Ratings recently maintained an investment-grade issuer rating while assigning BB ratings to proposed hybrid securities, underscoring the sensitivity of parts of the automaker’s capital structure to credit deterioration. ([spglobal.com](https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3528399?utm_source=openai))

A material increase in fallen angels could create forced selling by investment-grade funds while expanding the high-yield market with relatively large, more established issuers. That transition may increase volatility in crossover bonds and make rating outlooks, leverage trends and refinancing needs more important market signals.