Financial

Guaranteed Return Structure

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.
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References in periodicals archive
Owing to this guaranteed return structure, PPF and PF schemes could not invest in equities and hence not generate a huge uptick in returns through a reasonable exposure to equities.
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