Guaranteed Return

Guaranteed Return

A return that a company is required to pay. Bonds and coupons have guaranteed returns because the issuing company agrees to pay coupons and guaranteed dividends. This contrasts with non-guaranteed returns, such as the dividends on common stock, which a company may decide not to pay. A guaranteed return does not necessarily mean that the company will pay (the company may, for example, default or go bankrupt). However, under some circumstances, the holders of securities with guaranteed returns may force the liquidation of the company.
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Kartik Jhaveri, director, Transcend Consulting, a wealth management company, says, " One must know that these are not guaranteed return schemes, they are guaranteed payment schemes.
com informs practitioners on what the best ROI for a practice is, what to do, what a truly guaranteed return is and the biggest mistake a practitioner can make in this investment.
It said that Protected Equity plus life insurance plan (PEP) is a single-premium, investment-linked, insurance plan that provides equity growth potential, with a guaranteed return of the initial premium if stock markets fall.
The housebuilder has introduced an initiative which invites family and friends to help purchasers with the cash deposit they need to buy a new home and in return Taylor Wimpey will pay them a guaranteed return of 5% per annum for five years on the sum invested.
If you hold vouchers, you run the riskof becoming an unsecured creditor in a firm with no guaranteed return.
The second option is a five-year euro denominated, 100pc principal protected at maturity note offering guaranteed return of 6pc per annum paid annually.
The moves, made in 1999 and 2000 at the height of a stock market boom, saw the investments lose a guaranteed return of around 7% per annum in place of exposure to wider share price movements.
Among recent developments is Guaranteed Return Plus, a rider that combines exchange-traded funds with a guaranteed minimum accumulation benefit.
Variable life insurance is suitable for younger, risk-tolerant investors because it includes a more volatile mix of mutual funds, bonds, and stock investments and does not offer a guaranteed return.
If so, consider Abbey's latest Guaranteed Growth Bond (Issue 3) linked to the performance of shares in FTSE-100 over 5Vfc years and offering a guaranteed return of 20 per cent plus return of initial capital if held for full term.
But it is only a good investment if you are paying cash for your second home or have a mortgage lower than your guaranteed return.
The proposed GOP measure would permanently end a statutory provision under which nonprofit lenders that finance their loans using tax-exempt bonds receive a guaranteed return rate of 9.

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