Secured bond

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Related to Secured Debentures: Unsecured Debentures

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 ?
We expect the company to continue facing high liquidity pressure in the next 12-18 months due to substantial debt maturities falling due starting 26 May 2018, when the first LKR250 million principal repayment of its LKR1 billion secured debenture falls due.
Claude Resources Inc (TSX: CRJ) (AMEX: CGR), a Canada-based company that explores for mineral resources, has completed an offer to acquire a part of an outstanding 12% senior secured debentures of the company.
Fitch has also affirmed the National Rating on Kotagala's outstanding senior secured debentures at 'CC(lka)'.
Exall enters into an agreement to issue $35,000,000 worth of senior secured debentures, fully secured by Exall s oil and gas assets, maturing 5 years from the issue date, and bearing interest at 8% per annum,
M2 EQUITYBITES-July 9, 2012--Radiant to issue secured debentures, bonus shares(C)2012 M2 COMMUNICATIONS http://www.m2.com
11 November 2010 - DBRS on Wednesday gave a BBB ("low") rating with a "stable" outlook to the CAD200m (USD199.4m/EUR145.5m) 5.15% senior secured debentures issue, due on 16 November 2020, of Cogeco Cable Inc (TSE:CCA).
--Senior secured debentures revised to 'AA(bra)' from 'AA-(bra)';
The mortgage securing this loan is subordinate in ranking to existing mortgages on the Company's properties in favour of Franco-Nevada Corporation (secured debentures issued in October 2011 (for a principal amount of $2,000,000) and April 2012 (for a principal amount of $1,500,000)).
Fitch has not provided any rating uplift for the collateralisation on the senior secured debentures as their recovery prospects are considered to be average and comparable with those of the unsecured notes in a developing legal system.
( Premium or the Company ) is pleased to announce that it has closed a non-brokered private placement (the Private Placement ) of senior secured debentures (the Debentures ) for gross proceeds of $340,000.
Fitch has also assigned Kotagala's outstanding senior secured debentures a National Long-Term Rating of 'B+(lka)'.