secured bonds

**Secured Bonds**

Secured bonds are a type of corporate or government bond that are backed by specific assets or collateral. This means investors have a claim on the issuer’s designated property, such as real estate, equipment, or other tangible assets, in case the issuer defaults on interest payments or principal repayment. Because of this added protection, secured bonds typically carry lower risk compared to unsecured bonds and may offer lower interest rates as a result. They are a popular choice for conservative investors seeking fixed-income investments with an extra layer of security.