Angel Bond

Angel Bond Meaning:
A slang term for investment-grade bonds. Investment-grade bonds are those issued by entities with high credit ratings, are theoretically less risky than bonds issued by entities with lower credit ratings, and therefore typically pay a reduced rate of interest.

Angel Bond Example:
Investment-grade bonds are those rated at least BBB by the ratings agency Standard & Poor’s and at least Baa3 by the ratings agency Moody’s. These ratings are based on the estimated likelihood that the issuer will be able to meet their payment obligations.