secured bond

secured bond definition - finance
A bond that is backed by a legal claim on a specified asset or property. A mortgage bond, which is secured by the underlying property, is an example. In the event of a default or a bankruptcy proceeding, a secured bondholder is given preference over other bondholders and shareholders. Secured bonds contrast with debentures, which are unsecured bonds. Also called senior bond.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.