What Does Secured Bond Mean An Investor's Simple Guide

January 20, 2026

Ever wondered what a secured bond means? The easiest way to think about it is to compare it to a home mortgage. When you get a mortgage, the house itself acts as collateral. If you can’t make the payments, the bank has a claim on your house. A secured bond works on the same principle for investors. A company or government entity that issues a secured bond pledges a specific, valuable asset—think a factory, a fleet of aircraft, or a portfolio of real estate—as a safety net for the investor. ...