Debentured

/dɪˈbɛntʃərd/ adjective

Definition

Secured or guaranteed by a debenture, which is a type of bond or certificate of debt issued by a company or government.

Etymology

From debenture (from Latin debentur, meaning 'they are owed,' from debere 'to owe'), modified with the adjective suffix -ed. The term refers to an unsecured loan backed only by the creditworthiness of the issuer.

Kelly Says

Debentures represent a brilliant financial invention—they let governments and companies borrow money based purely on reputation rather than physical collateral, so a company's good name actually becomes tradeable value!

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