Legal English – Peter’s Pills – Lesson 67 – Bonds vs Debentures

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Bonds vs Debentures

Transcript:

Hello!

In the world of money, bonds (generalmente obbligazioni con garanzie) and debentures (generalmente obbligazioni senza garanzie) have some important differences. Let’s look at these and the vocabulary that surrounds this topic.

 BondDebenture
DefinitionSecurity (titolo) representing long-term debt issued (emesso) by companies or governments.A type of bond that is not secured (non garantita) by specific assets but relies on (fa affidamento sul) the general creditworthiness (merito creditizio) of the issuer.
SecurityCan be secured (garantita) or unsecured (non garantita).Primarily unsecured; not backed by collateral (non supportata da garanzie), relying on the issuer’s creditworthiness.
Priority in RepaymentSeniority varies, can be secured debt (debito garantito) or unsecured (non garantito) with different levels of priority.Generally unsecured and ranks (si posizionano) below secured debts in the event of liquidation or bankruptcy.
Convertible OptionSome bonds may have a convertible feature, allowing conversion into equity (azioni).Debentures rarely have a convertible option, maintaining a fixed interest payment structure.
Interest PaymentsFixed or variable interest payments.Fixed interest payments, providing a steady income stream (flusso di reddito stabile) to debenture holders (detentori).

Thank you very much, and see you next time for more Peter’s Pills to improve your legal English.

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See more about bonds and other debt securities here: “Bonds and other debt securities” (.PDF).


Legal English for Notaries - By Federnotizie

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Legal English – Peter’s Pills – Lesson 67 – Bonds vs Debentures ultima modifica: 2024-01-31T09:32:49+01:00 da Peter Liebenberg
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