Bond guarantee
A bond guarantee is a cash suretyship that secures corporate bond issues.
A credit guarantee can not only be linked to a for the credit from a creditor, but can also serve as security for bonds by companies. In the latter case, we can talk about a bond guarantee.
In this case, the guarantee assures bond investors that they can count on repayment of the principal amount of the bond according to the original conditions, if the drawer of the bond is unable to do so for some reason. Bond investors are those who buy the issued bonds during subscription, on the stock exchange, on the over-the-counter market, for example.
Last edited: March 15, 2023