Wrapped

A "wrapped" bond is insured by a third party, most commonly by a monoline insurance company, such as MBIA, AMBAC, FGIC, FSA, or XCLA. This is very prevalent in the municipal bond market and somewhat common in ABS.

E.g. The bond is A under with a FGIC wrapper.

Translation: The bond is rated AAA/Aaa due to FGIC insurance, and would be rated A without insurance.