Classification of unsecured corporate bonds

There are four main types of unsecured corporate bonds: (1) income corporate bonds. Corporate bonds that pay interest according to company income. When the company's operation is unfavorable, it can temporarily stop paying interest, and then pay accumulated interest when it is profitable. Its right to compensation has priority over the debts of its subsidiaries. (2) Subsidiary bonds. Corporate bonds paid after credit corporate bonds when the company goes bankrupt and liquidates. (3) Credit company bonds. Unsecured corporate bonds are completely dependent on corporate credit and bond recovery. (4) Converting corporate bonds. Convertible into corporate bonds that issue shares of the company. (5) Subordinate corporate bonds. The bondholders' right of compensation is inferior to that of ordinary creditors' corporate bonds. When a company distributes assets, its status is similar to that of ordinary shareholders.