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  • What is a debenture bond?

    A debenture is a type of debt instrument unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

  • What is a corporate bond?

    A corporate bond is a type of debt security that is issued by a corporation in order to obtain additional financing. The corporation may issue the bond to raise additional funds for ongoing operations, to merge with or acquire another company, or to expand its business (new products, geography, etc.). Corporate bonds typically pay interest,...

  • What is a collateral trust bond?

    A collateral trust bond is a bond that is secured by a financial asset, such as stock or other bonds, that is deposited and held by a trustee for the holders of the bond.