Fallen Angel

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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.

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    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
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  4. What bond indexes follow the supply and demand for junk bonds?

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