debentures
Unsecured corporate bonds
Debentures are unsecured debt instruments issued by corporations or governments, backed only by the issuer's creditworthiness rather than specific assets.
Unlike secured bonds, holders of debentures have no claim to particular property if the issuer defaults—they're general creditors.
The company issued debentures to raise capital for expansion.
In British usage, debenture sometimes refers to secured bonds, reversing the American distinction.
Ties that unite
- unsecuredNot backed by collateral
- securitiesTradeable financial assets
- fixed-incomeAssets yielding constant returns
- couponCertificate for reduced price
maturity · principal · issuer · indenture · creditworthiness · redemption · subordinated · senior
Formal binding contract
- trusteeOne managing another's assets
- covenantBinding formal pledge
- collateralSecurity for debt
- unsecuredNot backed by collateral
subordination · default · enforcement · creditor · priority · claims · bankruptcy · restructuring
Impartial treatment or ownership value
- sharesUnits of company ownership
- conversionAct of changing states
- stockGoods kept for sale
- optionAvailable course of action
hybrid · premium · dilution · exchange · warrant · upside · appreciation · bondholders
Collected works or assets
- fixed-incomeAssets yielding constant returns
- yieldProduce or relinquish
- returnGo back again
- S&PMajor stock index
risk · diversification · income · institutional · retail · trading · liquidity · spread
bonds
Ties that unite
- unsecuredNot backed by collateral
- securitiesTradeable financial assets
- fixed-incomeAssets yielding constant returns
coupon · maturity · principal · issuer · indenture · creditworthiness · redemption · subordinated · senior · callable
indenture
Formal binding contract
- trusteeOne managing another's assets
- covenantBinding formal pledge
- collateralSecurity for debt
unsecured · subordination · default · enforcement · creditor · priority · claims · bankruptcy · restructuring · seniority
equity
Impartial treatment or ownership value
- sharesUnits of company ownership
- conversionAct of changing states
- stockGoods kept for sale
option · hybrid · premium · dilution · exchange · warrant · upside · appreciation · bondholders · parity
portfolio
Collected works or assets
- fixed-incomeAssets yielding constant returns
- yieldProduce or relinquish
- returnGo back again
S&P · risk · diversification · income · institutional · retail · trading · liquidity · spread · benchmark
- bondsbond, corporate bond, corporate bonds, government bond, municipal bond
- corporate financecost of capital, investment, capital markets, NPV, shareholder
- investmentsbonds, stocks, securities, investment, equities
- securitiessecurities, shares, equities, bonds, stocks
- stock marketstock, shares, stocks, trading, stock market
- bond termsbond interest, yield, accrued interest, junk bonds
debenturescommon stock
Basic corporate ownership units
equity · preferred stock · stock certificates · shareholdings · stock options