Upstream Guarantee

Filed Under »

	Definition of 'Upstream Guarantee' A contingent liability on a subsidiary's financial statements in which the subsidiary guarantees its parent company's debt. Upstream guarantees are performed to get better financing terms for the parent or to initiate financing.
	Investopedia explains 'Upstream Guarantee' An upstream guarantee is often performed in a leveraged buyout situation in which the parent company takes on a substantial level of debt to acquire another firm. Without an upstream guarantee, the offer may not even be able to take place, as there may not be enough collateral on the parent company's balance sheet.

Related Definitions

Search results for

Money Market: Treasury Bills (T-Bills)

Treasury Bills (T-bills) are the most marketable money market security.
Read More »
Junk Bonds: Everything You Need To Know

Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
Read More »
Savings Bonds For Income And Safety

They may not be sexy, but bonds offer undeniable benefits to investors.
Read More »
Agency Bonds: Limited Risk And Higher Return

Discover these safe alternatives to Treasury bonds.
Read More »
Hedge Your Bets With Inflation-Linked Bonds

ILBs such as TIPS and I-Bonds allow investors to curb the corrosive effects of inflation and increase portfolio diversification.
Read More »
Key Strategies To Avoid Negative Bond Returns

It is difficult to make money in bonds in a rising rate environment, but there are ways to avoid losses.
Read More »
Microsoft Excel Features For The Financially Literate

Here are some of Excel's functions and features that a financial professional can use to make his or her job more efficient.
Read More »
3 Bonds You May Have Never Heard Of

These lesser-known bonds may give your portfolio a boost when other investments products fall short.
Read More »
Reporting Your Interest Income

Find out how your accounts are taxed and which forms you need.
Read More »
Is Your Insurance Company Going Belly Up?

When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
Read More »

Partner Links

Translating "Fed Speak" Into Plain English	The Complete Guide To Vacation Properties		Problems Loom For The Chinese Economy	Did Facebook Overpay for Instagram
	U.S. Government Cracks Down On Insider Trading	Ethical Investing Tutorial	Beginner's Guide To Using MetaTrader 4