FREE Account Opening + No Clearing Fees
Loading...

What are the differences between Unsecured and Secured NCD?

asked

Open an Instant Account with Zerodha

Unsecured vs Secured NCD

Secured NCDs Unsecured NCDs
  • These are backed by company assets
  • In case of default, company assets can be liquidated to repay investors
  • Offers lower returns than unsecured NCDs
  • Less risky than unsecured NCDs
  • These are not backed by company assets
  • In case of default, investors cannot reclaim money through asset liquidation
  • Offers higher returns than secured NCDs
  • More risky than secured NCDs
answered


Comments

Add a public comment...