Fallen Angel


DEFINITION of 'Fallen Angel'

1. A bond that was once investment grade but has since been reduced to junk bond status.

2. A stock that has fallen substantially from its all time highs.

BREAKING DOWN 'Fallen Angel'

There is a fine line between fallen angels that are value stocks and those that are headed straight towards bankruptcy.

  1. Archangel

    An angel investor who has invested in a number of ventures that ...
  2. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  3. Investment Grade

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  4. Falling Knife

    A slang phrase for a security or industry in which the current ...
  5. Correction

    A reverse movement, usually negative, of at least 10% in a stock, ...
  6. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
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