debentures

Definition

A fancy IOU that large corporations hand out when they want your money but don't feel like putting up actual collateral—basically a bond secured by vibes and corporate credit alone. These instruments exist in that gray area where investors hope the company won't spectacularly implode before maturity. Favored by established firms with enough credit rating swagger to skip the asset-backing requirement.

Example Usage

The investment bank underwriting the company's debentures confidently assured us that bankruptcy was 'highly unlikely,' a phrase we've learned to distrust.

Source: Securities law terminology; Merriam-Webster

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