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 later successfully emerged from bankruptcy through restructuring.
- A government bond currently trading at a significant discount relative to its par value.
- A bond that was issued as investment grade but has since been downgraded to high yield.
- A high-yield bond that has since been upgraded into investment-grade territory.
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