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What is the difference between secured and unsecured NCDs?

Secured Vs unsecured NCDs: Differences
Basis Secured NCD Unsecured NCD
Meaning Backed or guaranteed by company's assets. Not backed by the assets of NCD issuer company.
Default In default of payment, assets can be liquidated to repay investors. Company's assets cannot be liquidated.
Risk Less risky as payment is guaranteed. High risk.
Returns Secured NCDs carry less risk and offers lower returns. Unsecured NCDs offer comparatively higher rate of returns than secured NCDs.
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