NO.PZ2023090801000003
问题如下：
Which of the following statements about fallen angels is correct?
选项：
A.
Their outstanding debt has high-yield bond features.
B.
Their likelihood of financial distress is similar to that of other high-yield issuers.
C.
The improvement in issuer credit quality results in gains to the original investors.
解释：
B is correct.
Fallen angels’ likelihood of financial distress is similar to that of other high-yield issuers. A is incorrect because their outstanding debt has investment-grade (not high-yield) bond features; they are typically non-callable, with few restrictions and covenants and longer maturities. C is incorrect because the deterioration (not improvement) in issuer credit quality results in losses (not gains) to the original investors, many of whom must divest these bonds because they no longer meet minimum rating requirements. This can result in significant price deterioration because the high-yield bond market is a fraction of the size of the investment-grade bond market.
fallen angel: 从debt issuer 对credit rating降到了投机级别，但它发行在外的debt 还是具体IG的特征呢？
