Secured bonds give bondholders the right to take specified assets of the issuer if the issuer fails to pay principal or interest.

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This is a defining feature of secured bonds, also known as asset-backed bonds, which provide greater protection to bondholders in the event of a default by the issuer. The specified assets serve as collateral for the bond and can be seized by bondholders to recover their investment.

Secured Bonds Give Bondholders the Right to Take Specified Assets