Series 82: 3.3.3.4. Guaranteed Bonds

3.3.3.4. Guaranteed Bonds

Guaranteed bonds are backed by a firm other than the original issuer. Railroad companies are a common issuer of these bonds, and the guarantor is usually a parent company. While guaranteed bonds are technically a debenture since they are not secured by any hard assets, their credit quality is similar to a secured bond since both companies must make good on the bond.