Definition of Fallen angel:
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.
Bond that was investment grade when issued but now has much lower rating.
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?
- A fallen angel is a bond that has been reduced to junk status because its issuer has fallen into financial trouble.
- Its bonds pay higher returns than investment-quality bonds but are riskier.
- Some bond funds and ETFs focus on fallen angels.
Meaning of Fallen angel & Fallen angel Definition