Unsecured Bond
/ˌʌnˈsɪkjʊəd bɒnd/
Definitions
- (n.) A bond issued without specific collateral backing, relying on the issuer's creditworthiness.
Investors accepted a higher risk when purchasing the unsecured bond due to lack of collateral.
Forms
- unsecured bond
- unsecured bonds
Related terms
See also
Commentary
Unsecured bonds generally carry higher interest rates to compensate for increased risk compared to secured bonds.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.