Search Investopedia

Angel Bond

Filed Under » , ,
Dictionary Says

Definition of 'Angel Bond'

Investment-grade bonds that pay a lower interest rate because of the issuing company's high credit rating. Angel bonds are the opposite of fallen angels, which are bonds that have been given a "junk" rating, and are therefore much more risky.
Investopedia Says

Investopedia explains 'Angel Bond'

An investment-grade bond is rated at minimum 'BBB' by S&P and Fitch, and 'Baa' by Moody's. If the company's ability to pay back the bond's principal is reduced, the bond rating may fall below investment-grade minimums and become a fallen angel.

Related Definitions

  •

    Bond Rating

    A grade given to bonds that indicates their credit quality. Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of a bond issuer's ...
    Read More »

  • Bond

    A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used ...
    Read More »

  • Junk Bond

    A bond rated 'BB' or lower because of its high default risk. Also known as a "high-yield bond" or "speculative bond".
    Read More »

    • Ratings Service

      A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends.
      Read More »

    • Fallen Angel

      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.
      Read More »

    • Investment Grade

      A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such as Standard & Poor's, use different designations consisting of ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions