Fallen Angels Flashcards
1
Q
What is a fallen angel?
A
A fallen angel is a bond that was once rated as investment grade but has fallen to junk-bond status because of the issuing company’s poor credit quality.
2
Q
How do investors respond when a company, such as Ford or GM, have their credit downgraded?
A
Investors may sell their positions, usally at a loss.
3
Q
A
