Description

Type of Bond

These bonds are backed by real estate holdings and equipment, and if a company goes

bankrupt, the collateral can be sold off to compensate for the default. These bonds, more

so than other collateralized securities$,$ have prior claims over assets.

These bonds are not backed by any physical collateral. They are backed by the reputation

and creditworthiness of the issuing company.

These bonds have a claim on assets only after senior debt has been paid in full.