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• An insured bond is a municipal bond whose interest and principal payments are guaranteed by a triple-A rated bond insurer.

  Insurance protects municipal bondholders against default by the issuer and protects bonds in case they're downgraded by ratings agencies, which can decrease market value.

  Insured bonds generally offer a slightly lower rate of interest than uninsured bonds.

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  Cite Definition for Insured bond

  American Psychological Association (APA)

  Insured bond. (n.d.). Yahoo Personal Finance Glossary. Retrieved March 30, 2023, from website: http://www.expertglossary.com/definition/insured-bond.

  Chicago Manual of Style (CMS)

  Insured bond. finance.yahoo.com. Yahoo Personal Finance Glossary. Yahoo Finance. http://www.expertglossary.com/definition/insured-bond (accessed: March 30, 2023).

  Modern Language Association (MLA)

  "Insured bond." Yahoo Personal Finance Glossary. Yahoo Finance. 30 March. 2023 http://www.expertglossary.com/definition/insured-bond.

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