Rising Star

Parent term
A rising star is a bond that was considered a speculation grade when issued but has since improved their financials. Therefore, reducing the risk of default. These bonds are now closer to the security of an investment-grade bond. So while rising stars are junk bonds, there’s a good chance they will not always remain as junk bonds. In general, a rising star is a superior performing bond considered a “junk” or speculation grade investment.

Historically, only 19% of fallen angel debt eventually becomes a rising start (circa 2020)