Debentures

[Eugine]

Debentures are long-term Debt Instrument, which is not backed by Collaterals. Debentures are unsecured debt backed by the creditworthiness and reputation of the Debenture issuer and documented by an agreement called an indenture. Debentures are issued usually by large, financially strong companies with excellent bond ratings. One example of debenture is an unsecured bond.