• A joint bond or joint bond is a type of bond that is guaranteed by at least two parties.

  • Like a loan guarantor, the second party guarantees payment in the event of default by the issuer.
  • These bonds are often used when a subsidiary of a parent company needs collateral to obtain a loan.
  • Joint bonds are relatively safe investments and therefore offer the investor a more modest return.
  • Many economists argue that the European Union should consider issuing joint bonds to strengthen the euro.