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
These are high quality companies which drop below their issues 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
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