Mortgage bonds are backed by -Select-
. First mortgage bonds are senior in priority to claims of second mortgage bonds. Debentures are long-term bonds that are not
bonds
secured by a mortgage. Subordinated debentures are bonds having claims on assets only after senior debt has been paid in full in the event of liquidation. -Select-
are rated triple B or higher, and many banks and other institutional investors are legally limited to only holding these bonds. In contrast, junk bonds are high-risk, high-yield bonds.
