Secured bond

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Secured bond

A bond backed by the pledge of collateral, a mortgage, or other lien, as opposed to an unsecured bond, called a debenture .

Secured Bond

A bond with collateral. That is, the issuer pledges a property or other asset to the bondholders and states that they may take ownership if the issuer defaults. For example, a municipality may secure a bond with future receipts on property taxes. Likewise, a company may secure its bonds with a factory. Secured bonds carry less risk than unsecured bonds and therefore have lower coupon rates, which reduces the issuer's borrowing costs. All secured bonds must be repaid before any unsecured bonds are repaid.

secured bond

A bond that is guaranteed with a pledge of assets. A bond might be secured with real estate.

Secured bond.

The issuer of a bond or other debt security may guarantee, or secure, the bond by pledging, or assigning, collateral to investors. If the issuer defaults, the investors may take possession of the collateral.

A mortgage-backed bond is an example of a secured issue, since the underlying mortgages can be foreclosed and the properties sold to recover some of or all the amount of the bond.

Holders of secured bonds are at the top of the pecking order if an issuer misses an interest payment or defaults on repayment of principal.

References in periodicals archive ?
The Secured Debentures will be convertible, at the option of the holder at any time prior to the close of business on the earlier of the maturity date and the last business day immediately preceding the date fixed for redemption (the "Conversion Date"), at a conversion price of US$0.
The statements in this press release regarding the conversion of the senior secured debentures, reconstitution of the board of directors and management, actual and anticipated market conditions, any implied or perceived benefits from the new management, and any other effects resulting from any of the above are forward-looking statements.
The Series B Preferred Stock and the new convertible secured debentures include restrictions on conversion that prohibit a holder of these securities from converting them if it would result in the holder beneficially owning more than 9.
The Series B Preferred Stock and the convertible secured debentures include restrictions on conversion that prohibit a holder of these securities from converting them if it would result in the holder beneficially owning more than 9.
Airtrax issued investors secured debentures, convertible into shares of common stock at a conversion price equal to $0.
625 billion term loan and the $121 million of secured debentures are secured by a first lien on NMG's fixed and intangible assets, and have average recovery prospects (31%-50%).
BULLETIN BOARD: ENEI) today announced that all of the remaining holders of its 2004 and 2005 Convertible Secured Debentures have elected to convert their debentures into common stock.
today announced that it is working with its Senior Lenders that hold the Company's $15 million Senior Secured Debentures due August 31, 2008, in order to satisfy its future obligation and to settle a dispute of whether any default has occurred and whether a redemption has occurred, as asserted by the Senior Lenders.
625 billion term loan and the $121 million of secured debentures are secured by a first lien on the company's fixed and intangible assets, and have superior recovery prospects (70%-90%).
7 million remaining of 10% Senior Secured Debentures were subordinated to the new credit facility and were also amended to remove certain covenants requiring the Company to meet certain oil production thresholds going forward.
Other Income and Expense reflects the significant impact on our Statement of Operations of the transactions undertaken in connection with the sale of the Secured Debentures in April and May 2007.
7 million private placement of Senior Secured Debentures (the Debentures) issued by Midwest Energy, Inc.