Uninsured Bond

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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.
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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.
Analyzing bond data in the early 1980's, Carpenter (1991) found that insured bonds had a yield 87 percent lower than uninsured bonds.
For example, spreads for uninsured AAA-rated and AA-rated bonds were negative, meaning that the insured bonds actually had higher yields than the uninsured bonds.
Moreover, the change may increase the funds' income yields over time because uninsured bonds historically offer higher yields than insured bonds.
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.
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.
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.
300 million of MBIA insured revenue bonds rated `AAA' (Triple-A), and will issue approximately $60 million of uninsured bonds in the near future.
28, 2008, are in connection with the cancellation of bond insurance policies previously issued to secure payment of regularly scheduled principal and interest payments on the bonds; the replacement of various liquidity facilities which provided purchase price for tendered bonds; and the reoffering of the bonds as uninsured bonds expected to occur on Aug.