Description

Type of Bond

These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities$,$ have prior claims over assets.

These bonds are traded in the bond markets based on investors' belief that the issuer will not default on the repayment. These bonds have no collateral and usually offer higher yields.

These bonds are considered the riskiest of all corporate bonds and thus offer the highest interest rates.

Ambac Financial Group, MBIA Inc., Federal Guaranty Insurance Company, Assured Guaranty, and CIFG are some of the municipal bond insurance companies in the United States.

Municipal bond insurance companies guarantee to pay