insecure bond
[ɪnˈsɪkjər bɒnd]
nounpl: insecure bonds
título não garantido
1. A debt security that is not backed by collateral or specific assets, leaving the bondholder with lower priority in case of default or bankruptcy
The company issued insecure bonds with higher interest rates to compensate investors for the increased risk.
A empresa emitiu títulos não garantidos com taxas de juros mais altas para compensar os investidores pelo risco aumentado.
2. A bond whose repayment depends solely on the creditworthiness and general assets of the issuer
Investors must carefully evaluate the issuer's financial health before purchasing insecure bonds.
Os investidores devem avaliar cuidadosamente a saúde financeira do emissor antes de comprar títulos não garantidos.
In Brazilian financial markets, insecure bonds (títulos não garantidos) are typically issued by companies with strong credit ratings or by government entities. The higher interest rates compensate for the lack of collateral backing. This term is standard in Portuguese-speaking finance sectors but 'unsecured bond' is the more prevalent English terminology in international markets.
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