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 bond's pose little risk of default, since the companies that issue them are usually financially sound. Unsecured bonds are also known as debentures.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). unsecured bond. Retrieved September 28, 2026, from http://smartdefine.org/unsecured_bond/definitions/1165997 |
| Chicago | Barry Goldsmith. 2010. "unsecured bond" http://smartdefine.org/unsecured_bond/definitions/1165997 (accessed September 28, 2026). |
| Harvard | Barry Goldsmith 2010, unsecured bond, Smart Define, viewed 28 September, 2026, <http://smartdefine.org/unsecured_bond/definitions/1165997>. |
| MLA | Barry Goldsmith. "unsecured bond" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/unsecured_bond/definitions/1165997> |