The terms "secure" and "unsecure" (often referred to as *"secured"* and *"unsecured"*) relate to the type of collateral backing a bond and the relative risk to investors. Here’s a clearer definition of each: 

### *Secured Bonds*

*Definition*: Secured bonds are backed by specific assets or collateral that the issuer pledges to ensure repayment of the bond. If the issuer defaults, bondholders have a claim on the pledged assets.

*Characteristics*:
- *Collateral*: The bond is backed by physical assets (e.g., real estate, equipment) or financial assets (e.g., cash reserves, receivables).
- *Lower Risk*: Generally, secured bonds are considered less risky because the collateral provides a safety net for investors.

- *Types*:
  - *Mortgage Bonds*: Backed by real estate or physical property.
  - *Collateral Trust Bonds*: Backed by financial assets, like stocks or bonds owned by the issuer.
  - *Equipment Trust Certificates*: Backed by specific equipment, commonly used in industries like transportation.

*Examples*:
- *Mortgage Bonds*: Issued by companies or governments and backed by property or real estate.
- *Collateralized Debt Obligations (CDOs)*: Backed by a pool of various debt instruments.

### *Unsecured Bonds*

*Definition*: Unsecured bonds are not backed by specific assets or collateral. Instead, they rely on the issuer's general creditworthiness and ability to repay.

*Characteristics*:
- *No Collateral*: Investors have no claim on specific assets if the issuer defaults.
- *Higher Risk*: Generally, unsecured bonds are considered riskier than secured bonds because they lack the protection of collateral.

- *Types*:
  - *Debentures*: Bonds issued based solely on the issuer's creditworthiness and not backed by specific assets.
  - *Subordinated Debentures*: A type of debenture that ranks below other debts in terms of repayment priority in case of bankruptcy.

*Examples*:
- *Corporate Debentures*: Issued by companies and based on their general creditworthiness.
- *Government Bonds*: Often considered unsecured, though backed by the issuer's taxing power (e.g., U.S. Treasury Bonds).

### *Summary*

- *Secured Bonds*: Backed by specific assets, making them lower risk.
- *Unsecured Bonds*: Not backed by specific assets, relying on the issuer’s overall creditworthiness, and thus considered higher risk.

Understanding whether a bond is secured or unsecured helps investors evaluate the associated risks and potential returns.

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