Secured bond

**Secured Bond**

A secured bond is a type of bond that is backed by collateral to reduce the risk for investors. This collateral can be in the form of physical assets, such as property, equipment, or other valuable holdings, which serve as security for the bondholder. In the event that the issuer defaults on payments, bondholders have a claim on the specified assets. Secured bonds typically offer lower interest rates compared to unsecured bonds due to the added security, making them an attractive option for conservative investors seeking a balance between safety and return.