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Finance Dictionary and Glossary of Investment Terms
Any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A debenture is documented in an indenture.
An unsecured debt backed only by the credit worthiness of the borrower.
A bond issued without specific security. In the event of a crisis, holders of debentures take a back seat to other bondholders. To compensate for the added risk, debentures usually pay higher interest than secured bonds, or offer conversion to common stock.
An unsecured bond backed solely by the general credit of a company.