Angel Bond

Angel Bond

Informal; an investment-grade bond, which is a bond with a medium or high rating. Angel bonds are rated Baa3 by Moody's or BBB- by S&P or Fitch, or higher. Angel bonds are considered sufficiently low-risk that the law allows banks to invest in them. In addition to being low-risk, they provide a low return, greatly reducing the cost on the issuer. All Treasury and most municipal bonds are angel bonds.
Mentioned in ?
References in periodicals archive ?
Benchmark: Citi Time-Weighted US Fallen Angel Bond Select Index
There are actually fewer fallen angel bonds at the end of 2012 than there were at the beginning, though price appreciation has led to a higher overall market capitalization for the sector.
The rating mix of the fallen angel bonds is notably stronger than the rest of the high yield universe.