Debenture

Debenture is a debt obligation backed by the issuer’s general credit rather than a specific collateral pledge, unless its terms state otherwise.

Why this matters to income investors

An unsecured corporate debt claim depends on the issuer’s ability to pay and its place in the capital stack.

How to use debenture in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.