Debenture bond

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Related to Debenture bond: Debenture Stock

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.

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References in periodicals archive ?

In the first half of this year, corporate debenture issues on China's interbank bond market totaled 780 billion yuan, and the debenture bonds under custody hit 3 trillion yuan by the end of June.

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Elcoteq will use the proceeds from the offering to repay a EUR105m nominal amount of its outstanding debenture bonds.

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These bonds are not secured with assets but are debenture bonds, subordinate to bank debt.