6 terms

Default Risk

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mortgage bond
a bond backed by fixed assets
indenture
a formal agreement between the issuer and the bondholders
debenture
a long-term bond that is not secured by a mortgage on specific property
subordinated debenture
a bond having a claim on assets only after the senior debt has been paid off in the event of liquidation
investment-grade bond
bonds rated triple-B or higher; many banks and other institutional investors are permitted by law to hold only investment-grade bonds
junk bond
a high-risk, high-yield bond