Secured bond

Secured bond,

Definition of Secured bond:

  1. A secured bond is a type of investment in debt that is secured by a specific asset owned by the issuer. The asset serves as collateral for the loan. If the issuer defaults on the bond, the title to the asset is transferred to the bondholders.

  2. Secured bonds may also be secured with a revenue stream that comes from the project that the bond issue was used to finance.

  3. Alternative term for secured debenture.

How to use Secured bond in a sentence?

  1. A secured bond gives the investor first rights to certain collateral in case the issuer defaults on the payments.
  2. Utilities and municipalities often issue secured bonds.
  3. They offer slightly less interest in return for their greater safety.

Meaning of Secured bond & Secured bond Definition