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Guaranteed Bond

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Guaranteed bond
A type of bond for which a firm other than the issuer guarantees its interest and principal payments.

Guaranteed Bond
A bond on which payment is guaranteed by a third party such as a government or a bond insurance company. A guaranteed bond is doubly protected because it is payment can come either from the issuer or from the third party in case the issuer defaults. As such, a guaranteed bond is low risk and therefore usually carries a lower coupon rate than an uninsured bond or other bond without a guarantee. A bond guaranteed by the U.S. government is generally thought to be riskless.

guaranteed bond
A bond that is issued by one firm and guaranteed as to interest and principal by one or more other firms. Such bonds, often resulting from joint ventures, are particularly common among railroads that lease tracks to and from each another.


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The product is offered in USD and EUR guaranteed bonds as well as non-guaranteed USD income bonds.
Q I INVESTEDpounds 30,000 in a three-year guaranteed bond on the advice of my bank a year ago.
Preston also said the Bush administration supports an increase in the maximum amount of a guaranteed bond to $5 million, from the present $2 million.
 
 
 
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