A secured bond or secured Non-Convertible Debenture (NCD) is a type of debt instrument that is backed by specific assets or collateral.
For the investor, the secured bond offers a level of security because if the company defaults on its payments, the bondholder has a legal claim on the collateral to recover his investment. l.
Lower Risk Priority in Bankruptcy Stable Returns Diversified Risk
Lower Interest Rates Collateral Value Risk