Clearview Corporation, a company that deals mainly with the financing and distribution of music, issues debt with a maturity of 15 years. In the case of bankruptcy, holders of this debt will have claim to the intellectual property of Clearview. Which of the following best describes this type of corporate debt?

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Quizplus · Accepted Answer

This type of corporate debt is best described as an asset-backed bond because it is secured by a specific asset, in this case, the intellectual property of Clearview Corporation. Asset-backed bonds provide creditors with a claim to specific assets in the event of bankruptcy.

Clearview Corporation, a Company That Deals Mainly with the Financing