Uninsured Bond

Uninsured Bond

A bond on which payment is not guaranteed by a bond insurance company. An uninsured bond is not protected from default; that is, if the issuer states that it is unable to pay the bond, there is no recourse for bondholders to recoup their investment. Because of this added risk, uninsured bonds often carry a higher coupon rate than insured bonds.
References in periodicals archive ?
They found lower yields for insured bonds after the AHERF default but they also found a wider spread between the insured and uninsured bond yields and a lower proportion of insured bonds.
Uninsured bond offerings were hurt the most by the fall off of investment banks' diminished capacity to obtain capital necessary to maintain competitive underwriting operations.
The most significant benefit of bond insurance is interest savings--the "spread" between an insured and an uninsured bond.
TheMuniCenter will handle the back office process of combining the uninsured bond with the insurance policy in order to deliver the final product to the customer.
It also sees the government as ready to bailout senior bondholders in Credit Suisse and UBS but heavily downgrades ratings on subordinate debt on the assumption that, should the banks in Zurich get in trouble again, Geneva might take the radical Marxist action of letting investors in highly speculative uninsured bonds actually experience some capitalism.
The series 2011 bonds will be issued by Monongalia County Building Commission as 30-year fixed-rate uninsured bonds with final maturity in July 2041.
The Company regularly reviews its investment portfolio for other-than-temporary impairment declines in fair value considering, among other things, the underlying credit quality of any insured or uninsured bonds.
Moreover, the change may increase the funds' income yields over time because uninsured bonds historically offer higher yields than insured bonds.
However, Vanguard expects the policy change will have a favorable impact on the fund's yield because uninsured bonds typically carry higher yields than insured bonds.
The Company regularly reviews its investment portfolio for other than temporary impairment declines in fair value considering, among other things, the underlying credit quality of any insured or uninsured bonds.
In today's market, the yield on AAA insured bonds is generally higher than the yield on AA uninsured bonds.
Casselberry's uninsured bonds are rated "A" by Fitch.