Sometimes, it pays to dabble in something that's just a littlebad in the bond market.

Companies that were once investment-grade rated and have sinceplunged into junk territory are offering some of the best returnsin U.S. credit markets. So-called fallen angel securities havegained about 8 percent in the past 12 months, and 3 percent in 2015alone, according to Bank of America Merrill Lynch index data.

The securities beat the overall U.S. corporate-bond market by2.4 percentage points in the last year. When broken out by ratings,fallen angels bested both investment-grade and high-yieldnotes.

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