Sentences with phrase «potential fallen angels»

Ratings agency Moody's reported Monday that the rolls of «potential fallen angels,» or issuers with investment - grade debt currently in danger of becoming junk, swelled by 17 in the third quarter, while no companies fell into the opposite category, called «potential rising stars.»

Not exact matches

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

There is a fine line between fallen angel bonds and value stocks, which have the potential to recover from short - term challenges, and securities that are headed straight toward bankruptcy.

The potential problem is that sometimes the market gets it wrong and «fallen angels» can have an enormous negative impact on the index.