guaranteed bond

guaranteed bond
A type of bond for which a firm other than the issuer guarantees its interest and principal payments. Bloomberg Financial Dictionary

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guaranteed bond UK US noun [C] (also guaranty bond) FINANCE
a bond whose interest payments another organization promises to pay if the person or organization that originally borrowed the money is unable to: »

Guaranteed bonds have a better rating than similar unguaranteed issues as there is no risk of non-payment.


Financial and business terms. 2012.

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  • guaranteed bond — a bond issued by a corporation in which payment of the principal, interest, or both is guaranteed by another corporation. [1960 65] * * * …   Universalium

  • bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure …   Law dictionary

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