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.$$These bonds are traded in the bond markets based on investors$$ belief that the issuer will not default on the repayment. These bonds have no collateral and usually offer higher yields.$$These bonds have a claim on assets only after senior debt has been paid in full.$$