A bond which was investment-grade when issued but which is now of significantly lower quality.
In some cases, high quality companies are undervalued because of market conditions or lack of research coverage. Savvy investors often seek out such companies and invest in them based on their fundamentals and not only on the market's valuation.
a bond that was investment grade when issued, but has since degraded to junk quality.
This is a term that refers to a high quality company whose share price has fallen below its initial offering price.
These are high quality companies which drop below their issue prices due to market conditions or lack of research coverage. Knowledgeable investors often do screens of IPOs that have performed poorly to identify the gems among the pieces of coal.
first call date flight to quality
These corporate or government bonds were investment-grade when they were issued but have been downgraded by a rating service, such as Moody's Investors Service or Standard & Poor's (S&P). Downgrading may occur if the issuer's financial situation weakens, or if the rating service anticipates financial problems that could lead to default. The term is sometimes used more generically, too, to refer to stocks or other securities that are out of favor.
A bond that was rated investment grade (AAA to BBB) at issuance, but has fallen below investment grade (BB or lower). Bonds rated below investment grade are called junk bonds. See: Investment Grade; Junk Bond
1. A bond that was once investment grade but has since been reduced to junk bond status. 2. A stock that has fallen substantially from its all time highs.