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.

INVESTOPEDIA EXPLAINS '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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  5. What can cause a security to go from investment grade to "junk" grade?

    The most common reason for a debt security downgrade from investment grade to junk grade is a negative change in the bond ... Read Full Answer >>
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