What kind of corporate debt can be secured by any specified assets?

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Quizplus · Accepted Answer

Asset-backed bonds are securities that are backed by a specific pool of assets, such as loans, leases, or receivables. These assets are used as collateral to secure the debt, so if the company defaults on the bond, the investors can seize the underlying assets. This provides investors with a greater level of security, reducing the risk of default and potentially resulting in higher credit ratings and lower interest rates. Mortgage bonds would be limited to assets that are specifically properties, whereas notes and debentures may not necessarily be secured by any specific assets. A revolving line of credit is typically unsecured.

What Kind of Corporate Debt Can Be Secured by Any