Guaranteed Bond

A type of bond in which the interest and principal on the bond are guaranteed to be paid by a firm other than the issuer of the bond.

This guarantee limits the impact on bondholders if the issuer of the bond goes into default.

For example, in Canada, bonds issued by crown corporations are guaranteed by the federal government. If the issuer defaults on the debt obligation, the government is on the hook for the interest and principal payments.


Investment dictionary. . 2012.

Look at other dictionaries:

  • guaranteed bond — see bond 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • guaranteed bond — A type of bond for which a firm other than the issuer guarantees its interest and principal payments. Bloomberg Financial Dictionary * * * guaranteed bond UK US noun [C] (also guaranty bond) FINANCE ► a bond whose interest payments another… …   Financial and business terms

  • guaranteed bond — guaranteed stock A bond in which payments of principal or interest are guaranteed by a party other than the issuer. In the USA this is often a state …   Big dictionary of business and management

  • guaranteed bond — In the USA, a bond issued by one party with payment guaranteed by another party. A common example is a bond issued by a subsidiary undertaking, which is guaranteed by the holding company …   Accounting dictionary

  • guaranteed bond — noun : a bond on which payment of interest or principal or both are guaranteed by a corporation other than the issuer * * * a bond issued by a corporation in which payment of the principal, interest, or both is guaranteed by another corporation.… …   Useful english dictionary

  • guaranteed bond — Fin in the United States, a bond on which the principal and interest are guaranteed by a company other than the one who issues them, or a stock in which the dividends are similarly guaranteed. See also guaranteed stocks …   The ultimate business dictionary

  • 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

  • bond — A certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. A long term debt… …   Black's law dictionary

  • bond — A certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. A long term debt… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.