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 ?
EUR500 million 0.5% senior unsecured bond due 2020 affirmed at 'A+'
According to Coor, it is investigating the prerequisites for issuing a senior unsecured bond of approximately SEK1,000m, with the objective of increasing the company's financial flexibility and extending the debt maturity profile.
31 January 2012 - Italian bank Intesa Sanpaolo SpA (BIT:ISP) is reportedly marketing senior unsecured bonds denominated in euro, which will be due in 18 months, Bloomberg said on Tuesday, citing a banker participating in the deal.
DNO International ASA, a Norway-based company active within the oil and gas industry, is planning a senior unsecured bond issue of USD200m - USD300m.
Based on the documentation provided, NADB issued CHF125 million fixed-rate senior unsecured bonds. The notes pay 0.30 percent payable annually in arrears on July 24 each year, beginning on July 24, 2019, and will mature on July 24, 2026.
aACAo Series 158 JPY30 billion domestic senior unsecured bond, due 24 July,
The company said it had issued a senior unsecured bond loan of SEK500,000,000 on 2 October 2018, within a total framework amount of SEK700,000,000, on the Swedish bond market.
aACAo JPY30 billion Series 46 senior unsecured bond due 20 September 2019
Tieto Corporation issues a senior unsecured bond of EUR 100 million.
4 January 2012 - Dutch state-run lender ABN Amro is reportedly preparing a senior unsecured bond denominated in euro, Bloomberg said on Wednesday, citing a banker participating in the deal.
Global Banking News-September 18, 2018-Magnolia Bostad evaluating SEK700m senior unsecured bond issue
M2 EQUITYBITES-September 18, 2018-Magnolia Bostad evaluating SEK700m senior unsecured bond issue