Unsecured bond

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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.

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aACAo Series 158 JPY30 billion domestic senior unsecured bond, due 24 July,
subsequent to the rating received by the leading credit agencies in the world that is Standard & Poor's and Fitch, the company has decided to tap into the international bond market and is planning to raise around $200 million by issuing USD denominated non-convertible unsecured bonds.
Nordax Bank AB (STO:NDA) (OSE:NODA )(HEX:NDA1V) (CSE:NDA), a subsidiary of Nordax Group AB, announced on Thursday the successful issuance of SEK500,000,000 of senior unsecured bonds.
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Global Banking News-January 9, 2013--Senior unsecured bond issue by Sberbank subsidiary rated 'BBB-(EXP)' by Fitch(C)2013 ENPublishing - http://www.
The most recent issue of benchmark-sized senior unsecured bonds by an Italian lender was conducted by UniCredit (BIT:UCG) in July 2011, when it collected EUR1bn by selling floating rate notes due in 2013, Bloomberg data shows.
The bank said that it is planning to sell three-year senior, unsecured bonds in euros.
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