Unsecured bond

(redirected from Unsecured Debenture)
Also found in: Dictionary, Thesaurus.
Related to Unsecured Debenture: Unsecured Bonds

Unsecured Bond

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, an unsecured bond carries no collateral; in case of bankruptcy, the bondholder is considered a general creditor. Thus, the bondholder is paid out of funds that do not have a prior claim on them with a secured debt. Like most bonds, an unsecured bond can be traded. Some unsecured bonds, such Treasury securities, are considered risk-free. See also: Debenture.

Unsecured bond.

When a bond isn't backed by collateral or security of some kind, such as a mortgage, that can be used to repay the bondholders if the bond issuer defaults, the bond is described as unsecured.

However, most unsecured bonds pose limited risk of default, since the companies that issue them are usually financially sound. Unsecured bonds are also known as debentures.

References in periodicals archive ?
875 percent Senior Unsecured Debentures Series A, due November 26, 2012, including the applicable make-whole premium, and the remainder for general corporate purposes.
These Debentures rank pari passu with Dundee REIT s other outstanding senior unsecured Debentures.
253% series A Senior Unsecured debentures due October 3, 2018; CND 250m aggregate principal amount of 4.
In September 2012, $1 billion Series C senior unsecured debentures constituting part of the equity units were remarketed in two tranches, with the remaining $1.
In February 2011, the company sold USD150m (EUR122m) of senior unsecured debentures in a deal handled by RBC Capital Markets and Credit Suisse (NYSE:CS).
The Unsecured Debentures and the warrants were sold to six unaffiliated institutional and accredited investors.
These debentures will rank pari passu with the Company s outstanding senior unsecured debentures.
00% convertible senior unsecured debentures due 30 November 2012 with certain holders of original debentures.
2m) series E unsecured debentures of University of Toronto.
a-" on $350 million 7% senior unsecured debentures, due 2028
54% senior unsecured debentures of Toronto Hydro Corp, the provider of energy services to the metropolitan area and other parts of Ontario.
8% fixed-floater senior unsecured debentures due 2035 at 'A+';