bond-basics

Guaranty

A third party’s promise to pay the Debt Service on the Bonds or perform some other obligation, which is the primary obligation of another party.


See Also

Guarantor

The third party that executes a guaranty.

Debt Service

The amount of principal and interest required to be paid on an issue of bonds.

Credit Enhancement

The use of the credit of an entity having greater financial strength than the issuer or borrower to improve the credit quality of a bond issue.

Hudson Yards Rail Yards

Start with the Bond Basics

Agreement Among Underwriters

Agreement used in the purchase of a bond issue by a syndicate to set out the rights, obligations and purchase commitments of each underwriter; to authorize one or more underwriters to act as manager(s); and to give the manager(s) authority to act on behalf of the others in connection with the bond issue.