What term is used for bonds that were once rated as investment grade but have since been downgraded to junk bond status?

Bond Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Bond Marketsfinance-mcqs › bond-markets
Published
10 Apr 2023
Last updated
28 May 2026

Browse all Bond Markets MCQs

Choose the correct answer

Explanation

Bonds that were initially rated as investment grade but later downgraded to below investment grade (junk status) are known as fallen angels. This term reflects their decline in credit quality.

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.