Angel Bond Definition
Angel Bond is a low-risk
investment-grade bond that pays a lower interest rate due to high credit rating
of the issuing company. Investment-grade bonds are the ones graded BBB and
above by Standard & Poor's and graded Baa3 and above by Moody's. This is
also referred to as bank-grade, because banks are allowed to invest in these
bonds. They reduce the risk for the investor and the costs for the issuer.