This page illustrates a broad overview of the U.S. investment grade bond market. The left shows the spread of U.S. IG bonds over government bonds with similar duration. The right shows the number of upgrades from high-yield to investment-grade (rising stars) and downgrades from investment-grade to high yield (fallen angels) of each year. Conditions for investment grade bonds look positive, with the pandemic situation improving and the large U.S. fiscal stimulus boost. Corporate bond spreads are expected to remain tight with the Federal Reserve keeping an accommodative policy stance. After the spike in fallen angels last year, we could also see stabilization this year.