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 ?
Holders will exchange US$1,000 Silver Notes for US$1,000 Unsecured Debentures (prior to the addition of interest in arrears on the Silver Notes).
The new debt securities that will become direct unsecured obligations of CSXT and NSR will have maturity dates, interest rates and principal and interest payment dates identical to those of the respective series of Conrail's unsecured debentures.
These debentures will rank pari passu with the Company s outstanding senior unsecured debentures.
the Company ), Canada s leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing urban markets, announced today that it has agreed to issue, on a bought deal basis, C$100 million aggregate principal amount of Series Q senior unsecured debentures.
45 billion of outstanding senior unsecured debentures and $1.
NASDAQ: MCEL), a leading developer of hydrogen battery technology today announced that it has completed a $6 million private placement of convertible unsecured debentures (the "Unsecured Debentures") and warrants based on a 35% coverage ratio.
a-" on $350 million 7% senior unsecured debentures, due 2028
the Company ), Canada s leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing urban markets, announced today that it has agreed to issue, on a bought deal basis, C$60 million aggregate principal amount of Series P senior unsecured debentures, which is a re-opening of this series of debentures, the original issuance of which was completed in December 2012.
CALGARY, April 19 /PRNewswire/ -- PanCanadian Petroleum Limited is filing a Preliminary Short-Form Prospectus today for a non-fixed price offering of $200 million principal amount of unsecured debentures.
8% fixed-floater senior unsecured debentures due 2035 at 'A+';
The AGC shareholders would also receive (a) warrants to purchase a total of approximately 843,000 shares of the Company's common stock exercisable commencing on the third anniversary of the merger with an exercise price equal to the market price of the Company's common stock on the date of the merger, (b) $3,585,000 of unsecured debentures of the Company maturing three years from the effective date of the merger bearing an interest rate of 10% per annum and payable at maturity, at the election of the Company, in either cash or common stock of the Company, and (c) $2,500,000 per year payable quarterly, through no later than the third anniversary of the merger.