Bond Index slumped 13%, send broad fixed income strategies and exchange traded funds to some of their worst annual performances on record. Owing to the higher quality profile of these bonds relative to those born in junk territory, fallen angels often outperform traditional high-yield corporate debt and do so with less volatility. “Despite inflation being more elevated than the previous decade, yields – both real and nominal – on higher quality bonds now stand at their highest levels in 15 years.