Angel Bond

What Does Angel Bond Mean?
A slang term for investment-grade bonds which pay a lower interest rate, due to the higher credit rating of the issuing company. Angel bonds are the opposite of fallen angels, which are bonds that have a 'junk' rating, and are much more risky.

Investopedia explains Angel Bond
An investment-grade bond is rated at minimum BBB by the 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 Terms

Bond
Bond Rating
Fallen Angel
Investment Grade
Junk Bond
Ratings Service
More Related Terms

Related Links

Advanced Bond Concepts - Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?
Corporate Bonds: An Introduction To Credit Risk - Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
What are the risks of investing in a bond?
What does investment grade mean?
Junk Bonds: Everything You Need To Know - Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
Corporate Bonds: An Introduction To Credit Risk - Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

Rate this Term: Your Rating: Overall Rating: Vote Now!