Secured Versus Unsecured Bonds

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 31, 2021

Comparison Between Secured and Unsecured Bonds

Unsecured bonds, called debentures, are issued without any security to back them. Investors purchase them based on the creditworthiness of the company. Some bonds are secured by the borrower’s collateral or specified assets. These secured bonds are often referred to as mortgage bonds.

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