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.