straight debt

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Straight Debt

Any debt that cannot be changed into something else. For example, a regular bond is straight debt because it contains no special features beyond repayment with interest. Straight debt contrasts with convertible debt which may be exchanged for something else, usually common stock.

straight debt

Debt that cannot be exchanged for another asset. Because most bonds are not convertible, they are examples of straight debt. See also convertible security.