Following the burst of the Internet bubble and the volatile financial climate around the turn of the century, Proventus started to turn its focus towards the credit markets. Initially, using experience and analytical approaches from restructurings and active equity investments in companies in need of change, Proventus identified contrarian opportunities in so called “fallen angels” in the bond market. Fallen angels are bonds in previously high-rated companies that, because of underperformance and market reclassification, suddenly trade at a distressed level and offer significantly higher yield. In 2002 and 2003, Proventus invested in a number of these opportunities in highly regarded companies.