Unsecured debt

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Unsecured debt

Debt that does not identify specific assets that the debtholder is entitled to in case of default.

Unsecured Debt

A debt that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured debt carries no collateral; in case of bankruptcy, the debt holder is considered a general creditor. Thus, the debt holder is paid out of funds that do not have a prior claim on them with a secured debt. Some unsecured debts, such as Treasury securities, are considered risk-free.
References in periodicals archive ?
For simplicity, we assume that the bank has only short-term debt, some of which is collateralized debt c, the remainder is uncollateralized debt u.
SunPower's affiliation with Total is expected to benefit SunPower, lowering its cost of capital and increasing its access to uncollateralized debt financing.
The new series of ETNs is an uncollateralized debt obligation of Barclays Bank PLC with a 10-year maturity.