Secured bonds are bonds that

Business

1 answer:

Ilya [14]3 years ago

7 0

Answer:

A- have specific assets of the issuer pledged as collateral.

Explanation:

A secure bond is less risky compared an unsecured bond as in the event of default, the tittle of the assets that the issuer has pledged as collateral passes on to the bondholders. The bondholders are thus guaranteed that they will recover at least part of what they are owed from the proceeds of the assets.

An example of a secured bond is a mortgage backed security.

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