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.

References in periodicals archive ?
The net proceeds of the Placement will be used to redeem existing non-convertible and unsecured debentures of the Corporation and for general working capital purposes.
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At the same time, Fitch has assigned the company's new senior unsecured debentures of up to THB10 billion due 2022 a National Long-Term Rating of 'A+(tha)'.
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Osisko Gold Royalties Ltd (the Corporation or Osisko) is pleased to announce that it has closed its previously announced bought deal offering of convertible senior unsecured debentures of the Corporation (the Debentures) in an aggregate principal amount of C$300 million (the Offering).
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The agency has also maintained the RWN on the 'BBB-(lka)' rating of HDFC Bank's senior secured and senior unsecured debentures.
Osisko Gold Royalties Ltd (the Company or Osisko) is pleased to announce that, in connection with its previously announced C$284 million offering (the Offering) of convertible senior unsecured debentures (the Debentures) which consists of a public offering and a private placement, the underwriters have exercised their option to increase the size of the private placement of Debentures (the Private Offering) by C$16 million, for total gross proceeds from the Offering of C$300 million.
Golden Star Resources Ltd (NYSE MKT:GSS) (TSX:GSC) (GSE:GSR) reported on Thursday the repayment of the remaining USD13.6m principal amount of its 5.0% convertible senior unsecured debentures due 1 June 2017, plus accrued interest, in cash.
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