Bailout Bond

If you're going to bail a company out, you need a tool to accomplish the bailout. And some guts. Just because you want to bailout a company doesn't mean it will happen. After all, bailouts are usually just cash donations, and that money may not be the only thing a company is missing.

Bonds issued to help companies out of trouble are called bailout bonds. These can be issued by the company or government bonds, such as general obligation and/or special use bonds. They happen in dying or bad or heavily unionized industries, like auto-making, airlines, and railroads every now and then.