Debenture Definition

A debenture is a type of unsecured bond backed only by the general creditworthiness of the issuer rather than specific collateral.

What is a Debenture?

Debentures are commonly issued by governments and established companies with strong credit profiles.

Because they lack collateral backing, debentures may carry higher risk than secured bonds.

A corporation issuing bonds without pledging specific assets as security is issuing debentures.

Day trading is a strategy where positions are opened and closed within the same trading day.

A dealing desk is a broker execution model where client orders are processed internally rather than sent directly to external liquidity providers.

Default risk is the possibility that a borrower or issuer fails to meet its debt obligations.