This refers to bonds that are issued without security—in short, an unsecured loan. These are typically backed by general credit as opposed to a specific asset. Debentures rely on the reputation and creditworthiness of the issuer as support. Corporations and governments are usually the ones issuing debentures in order to raise funds and capital.
Debenture
This refers to bonds that are issued without security—in short, an unsecured loan. These are typically backed by general credit as opposed to a specific asset. Debentures rely on the reputation and creditworthiness of the issuer as support. Corporations and governments are usually the ones issuing debentures in order to raise funds and capital.
