Unsecured NCD Issue

Question

Unsecured NCD Issue

With unsecured NCDs issue, investors cannot reclaim the amount if the company defaults.

Answer 1 · 2019-04-04

Unlike the secured NCDs issue, the company has no liability to fulfill the debt obligation for investors. The investors are taking higher risk in unsecured NCDs than secured NCDs. This is the reason the unsecured NCDs provides a higher interest rate.

Unsecured NCD Issue

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