Fallen angel

Fallen angel,

Definition of Fallen angel:

  1. A fallen angel, in the investing world, is a bond that was initially given an investment-grade rating but has since been reduced to junk bond status. The downgrade is caused by a deterioration in the financial condition of the issuer.

  2. Bond that was investment grade when issued but now has much lower rating.

  3. The term is also sometimes used to describe a stock that has fallen precipitously from its all-time highs.

How to use Fallen angel in a sentence?

  1. A fallen angel is a bond that has been reduced to junk status because its issuer has fallen into financial trouble.
  2. Its bonds pay higher returns than investment-quality bonds but are riskier.
  3. Some bond funds and ETFs focus on fallen angels.

Meaning of Fallen angel & Fallen angel Definition