Debenture bond


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Debenture bond

An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond and collateral trust bonds.

Debenture

A debt security, issued by a government or large company, that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. That is, a debenture carries no collateral and is considered unsecured; in case of bankruptcy, the debenture holder is considered a general creditor. A debenture can be traded, and the term is often interchangeable with a bond. Debentures issued by governments are considered risk-free. See also: Treasury security.
References in periodicals archive ?
The debenture bonds that funded this month's 20-year 504 loans were sold to investors at an interest rate of 2.
Develop the Debenture Bond Market with Corporate Bonds as the Principal Product
It is expected the low rate for the debenture bond sales this month will result in an estimated effective interest rate of only 4.