Europe’s largest asset manager is building a credit fund centered around a ratings category maligned as a catalyst for the next global economic downturn.

Amundi Fund Solutions SICAV will buy bonds with an average rating of BBB-, the lowest investment-grade rank, in currencies including euros, dollars, and sterling from high grade to high yield. It touts itself as a source of income and capital appreciation in a world of negative-yielding government debt and volatile stocks for those willing to buy and hold for a recommended six years.

The fund is capitalizing on a sudden turnaround for debt pegged as the next source of financial havoc only last year by the likes of Scott Minerd of Guggenheim Partners and Bruce Richards of Marathon Asset Management. Instead of a crushing wave of “fallen angel” downgrades, corporate bonds with the lowest investment-grade ratings are spawning returns that are better than investment-grade peers this year.

Balance-sheet repair at some of the world’s biggest corporate bond issuers AT&T Inc. and General Electric Co. has helped assuage concerns about potential defaults after the share of BBB bonds swelled to about half the market in the U.S. and 40% of the euro market. That’s spurring investors faced with the biggest pile of negative-yielding debt in two years to go further afield, while the Federal Reserve signals an extended pause on rate hikes.

In euros, BBB bonds have returned 4.43% this year compared with 3.4% for peers rated two levels higher, according to Bloomberg Barclays indexes. The gap between BBB and A spreads in euros now stands at 51 basis points after approaching 70 basis points at the start of 2019.

“In a world of persistently low interest rates, investors are looking for new ways to get attractive returns on their investments,’’ Jean-Marie Dumas, head of fixed income solutions at Amundi, said in a statement Monday.

The Paris-based firm oversees 1.425 trillion euros ($1.6 trillion) of assets, according to its website.

This article was provided by Bloomberg News.