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 total purchase price consideration will amount to approximately USD90m and Enea is looking to raise SEK500m in a senior unsecured bond loan with a tenor of three years.
According to Enea, this senior unsecured bond of SEK500m has a floating rate coupon of 3 month Stibor + 5.
aACAo Series 159 JPY5 billion domestic senior unsecured bond, due 23 July,
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.
DNO International ASA, a Norway-based company active within the oil and gas industry, is planning a senior unsecured bond issue of USD200m - USD300m.
Volati said that on 5 December 2017, it had issued a senior unsecured bond loan of SEK600,000,000 within a total frame amount of SEK 1,000, 000,000 with a final maturity date on 5 December 2022.
Provider of air transportation service SAS AB (STO:SAS) reported on Friday the successful issue of a senior unsecured bond on the Nordic capital market.
SK) is planning to launch a two-part, euro-denominated, senior unsecured bond issuance.
M2 EQUITYBITES-May 19, 2017-Qliro Group issues SEK250m senior unsecured bond
USD 300 million, senior unsecured bond (floating), due on July 19, 2016