A debenture bond is an unsecured debt instrument issued by a company, backed only by the issuer’s creditworthiness rather than any specific asset. It promises fixed or variable interest payments and repayment of principal at maturity. Debenture bonds rely on the issuer’s general credit standing and legal rights rather than collateral. They are common in corporate finance and international markets.
"The company issued a 10-year debenture bond to raise capital for expansion."
"Investors preferred debenture bonds for their higher yield compared to secured notes."
"The debenture bond carries credit risk, as there is no specific asset backing."
"Regulators require clear disclosure of risk when selling debenture bonds to the public."
Debenture comes from Old French debte, meaning debt, and Latin debentus, meaning owing or owing to. The term entered English in the medieval and early modern financial vocabulary, referring to a written acknowledgment of debt issued by a government or corporation. In modern finance, debentures are a form of debt instrument that is not secured by specific collateral, differentiating them from secured bonds. The precise use of “debenture” has varied by jurisdiction; in the UK, it historically referred to an unsecured debt instrument often issued by companies, while in the US it is less common, with “debenture” sometimes used interchangeably with unsecured bonds. The compound term “debenture bond” emphasizes the nature of the instrument as a bond backed only by creditworthiness. First known uses in court records and financial registries appear in the 19th and early 20th centuries as corporate finance evolved, with issuers seeking flexible debt financing without pledging collateral. The evolution reflects a shift from asset-backed securities to credit-based instruments, alongside evolving regulatory environments that distinguish secured and unsecured debt. Today, “debenture” remains a technical term in many Commonwealth markets, while “unsecured bond” is the more general contemporary descriptor in some regions.
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Words that rhyme with "Debenture Bond"
-ure sounds
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- Debenture = /dɪˈben.tʃə/ (US: deh-BEN-chuh; UK/AU: di-BEN-tuh, stress on second syllable). Bond = /bɑnd/ (US/UK/AU). Full sequence: /dɪˈben.tʃə bɒnd/ (UK), /dɪˈben.tər bɑnd/ (US variant with rhotic schwa). Focus on the second syllable vowel quality and the final “-ture” as /tʃə/ in most dialects. Be sure the first syllable is unstressed and the main stress sits on the second syllable of Debenture.
- Turning Debenture into /ˌdiːˈben.tʊər/ or /ˌdiːˈben.tʃɜːr/ adds an awkward diphthong. Correct it to /dɪˈben.tʃə/ with a lax, unstressed first syllable. - Slurring the /tʃ/ into /t/ or /ʃ/ can blur Debenture’s middle sound; keep the /tʃ/ as a single affricate. - Bond often sounds like /bɒnd/ in UK/AU; in US practice, ensure a clean /ɑː/ or /ɔː/ depending on accent; don’t shorten to /bɒnd/ in contexts where you’d hear /bɑːnd/ or /bɒnd/.
- US: /dɪˈben.tjɚ bɑnd/ with rhotic /ɚ/ in Debenture and /bɑnd/ for Bond; the second syllable may reduce to /tjɚ/ or /tər/. Final /ɑnd/ is open back unrounded. - UK: /dɪˈben.tʃə bɒnd/ with non-rhotic /ɒ/ and a clearer /tʃ/; Debenture often pronounced as /dəˈben.tʃə/ in casual speech. - AU: similar to UK, often /dɪˈben.tʃə bɒnd/ but with Australian vowel qualities; may show a more centralized /ə/ in the second syllable. The key differences are rhoticity (US rhotic /ɚ/ vs non-rhotic UK/AU /ə/), vowel quality in the Bond vowel, and the treatment of the /tj/ cluster in some speakers.
- The word Debenture contains a tricky /tʃ/ cluster after a stressed syllable and a schwa-like ending /ə/, which can be mispronounced as /tʃə-r/ or /tɜː/ if mishearing. - The combination of the /tʃ/ sound with the unstressed second syllable makes the syllable-timed rhythm challenging, especially in fast speech. - The Bond segment has a rounded back vowel that shifts subtly by accent (US /ɑ/ vs UK/AU /ɒ/). Focus on preserving a crisp /tʃ/ and a short, unstressed second syllable, while producing a clear /ɑː/ or /ɒ/ in Bond.
No. There are no silent letters in Debenture Bond. Debenture is pronounced with all letters represented: /dɪˈben.tʃə/ and Bond is /bɒnd/ or /bɑnd/. The difficulty lies in the placement of the primary stress on the second syllable and the /tʃ/ sound in the middle, not silent letters. Ensure each consonant sound is audible and not swallowed in rapid speech; keep the /tʃ/ crisp and the final /d/ in Bond fully voiced in some accents.
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