Credit bonds are also called unsecured bonds. Bonds that are issued with the good reputation of the company without specific property mortgage guarantee. Holders of credit bonds have the right to claim all assets of the issuer that are not mortgaged by other debts. At the same time, the holders of credit bonds also have the right of claim for those mortgaged assets that exceed their bond demand. Compared with guaranteed bonds, holders of credit bonds take on greater risks, so they often demand higher interest rates.
The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"