Answer:
Have specific assets of the issuing company pledged as collateral.
Explanation:
The concept of a secured bond is similar to that of a secured loan. The secured bond requires the issuer to attach some specific assets as collateral. If the bond issuer fails to honor his bond obligations, the title for the assets passes on the bond buyers.
Secured bonds assure the investors that at least end up the certain assets should the bond issuer fail in bond payments. Corporations or government agencies that lack convincing financial track records use a secured bond to attract investors.
