Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Uncovered Debt Instrument: Examples – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Monday, April 28, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Finance

  Finance   |   Tutorial
  • 203
  • June 4, 2024
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Uncovered Debt Instrument: Examples

An uncovered debt instrument is a type of fixed-income instrument that is not backed by collateral. It is backed (covered) by the creditworthiness of the issuer (issuing entity). Unlike secured debt instruments, which depend on the collateral posted, unsecured instruments lack an additional layer of protection. However, the higher risk involved entails a bigger risk premium, and consequently a higher potential return.

Uncovered debt instruments involve a certain form of unsecured debt– any type of debt or general obligation that is not secured or protected by a guarantor, or collateralized by a lien on specific assets of the borrower for any case of a bankruptcy or liquidation or inability to meet the terms for repayment and settlement.

The main examples of uncovered debt instruments are:


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=4b2e1d8ijt]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Tutorials

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*