Guaranteed Return Structure(redirected from Guaranteed Return Structures)
Guaranteed Return Structure
A way to structure a security in which the amount invested is protected. For example, a bond has a guaranteed return structure because, in the event of liquidation, bondholders have prior claim to their initial investment over other investors. Likewise, a co-signed loan has a guaranteed return structure because a third party agrees to take on the liability in the event of default. Many guaranteed return structures are based on debt.