Fallen Angel

What is a 'Fallen Angel'

A fallen angel is 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.

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RELATED FAQS
  1. How are junk bonds rated differently by Standard & Poor's and Moody's?

    Learn how credit rating agencies rate bonds with junk bond status, and understand how downgrade risk can impact the price ... Read Answer >>
  2. What can cause a security to go from investment grade to "junk" grade?

    Learn why bonds may be downgraded from investment grade to junk grade, and what impact this can have on the bond's price ... Read Answer >>
  3. What are some examples of high yield bonds?

    Understand the nature of high-yield bonds and discover some examples of companies that become issuers of high-yield debt ... Read Answer >>
  4. Why has the market for high yield bonds grown so much?

    Discover information on the high-yield bond market and learn the reasons why this investment market has grown so rapidly ... Read Answer >>
  5. How do I compare one junk bond to another?

    Discover how to identify, select and compare junk bonds. Learn the role that risk, yield and opportunity cost play in investing ... Read Answer >>
  6. What bond indexes follow the supply and demand for junk bonds?

    Learn about indexes that track junk bonds, why junk bonds pay more interest than other types of bonds, and how these bond ... Read Answer >>
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