Secured loans give the bondholders a claim to a specific asset of the company in case of default.

Name: Secured loans give the bondholders a claim to a specific asset of the company in case of default.
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Secured loans are backed by a specific asset of the company, which is pledged as collateral. In case of default, the bondholders have the right to claim ownership of the asset to recover their investment.

Secured Loans Give the Bondholders a Claim to a Specific