fallen angel

fallen angel definition - finance
A bond that was investment-grade quality when it was issued but which has been reduced to junk, or non-
investment grade, status. These bonds become fallen angels because the company has added too much debt or because sales have fallen drastically and no longer enable the company to sufficiently cover its interest payments.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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