Unsecured Bond (Noun)
Meaning
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A company issuing an unsecured bond is essentially asking lenders to trust that they will make good on their promises to repay the debt over time with interest.
- When a company issues an unsecured bond, it is essentially allowing investors to obtain a share of the company's future profits before they are realized.
- The company offered an unsecured bond with attractive interest rates, hoping that investors would trust that the company would make good on its debt.
- Investors are willing to buy unsecured bonds from reputable companies because they trust that they will get their money back with interest.
- Issuing an unsecured bond allows companies to obtain financing without having to put up any collateral, relying instead on the trust of their investors.