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What Is An Angel Bond? |
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Answer» Angel BONDS are 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. 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. Angel bonds are 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. 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. |
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