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angel bond

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Financial Dictionary

Angel Bond

A slang term for investment-grade bonds. This is the opposite of fallen angels, which are bonds that have a 'junk' rating.

Investopedia Commentary

An investment-grade bond is rated at minimum as 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 thereby become a fallen angel.

Related Links

Junk Bonds: Everything You Need to Know
Corporate Bonds: An Introduction To Credit Risk

See also: Bond, Bond Rating, Fallen Angel, Investment Grade, Junk Bond, Ratings Service

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