easy · FRM Part 1 Financial Markets and Products
A 'Fallen Angel' is a term used in the bond market to describe:
- A bond that has defaulted and then successfully emerged from bankruptcy.
- A government bond that is trading at a significant discount to par.
- A bond that was issued as investment grade but has since been downgraded to high yield.
- A high-yield bond that has been upgraded to investment grade.
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