Investor Glossary-joint bondInvestor Glossary-joint bondInvestor Glossary-joint bondInvestor Glossary-joint bondInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Joint Bond

The HTML to link to this page
 

Joint bond, or a "joint-and-several bond" is a bond guaranteed by the issuer and another party. A joint bond is most often used by a subsidiary to gain access to a parent company guarantee on a bond. For example, if Tractorco's software subsidiary wanted to issue a bond but did not have enough revenue, they might issue a joint bond with Tractorco as the second guarantor. Any bond with more than one obligor is a joint bond. The "joint and several" aspect of any joint bond is that either or both obligors may be liable for the full amount of the issuer guarantee. Thus, a joint bond guarantor cannot sever the obligation without default. A joint bond, unlike a guaranteed bond, is fully secured by the parent or other obligors.



Rate this Joint Bond definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, Key Rate Duration, implied volatility, 144a, required rate of return, class C shares, open position, Zero Cost Collar, ex-dividend date, retained earnings, LIBOR, stock split, EBITDA, ex-dividend, limit order, balance sheet, FTSE, deferred tax, liquidity ratio, 1031 exchange, per diem, deferred revenue, reverse mortgage, cancelled check, stock market close, margin rate, current ratio, diluted share, dividends payable, real GDP, in escrow, risk management, APR, irrevocable trust, command economy, quality assurance, wholly-owned subsidiary, 1035 exchange, option premium, VIX, covered put, labor relations, average price per share, inflation, phantom income, minority interest, 401a, debt service coverage, annual return


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use