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Tag - debt capital

Understanding Debt Capital and Eurobonds

Debt Capital When a company borrows funds, it creates a creditor rather than a shareholder. Debt capital occurs in a variety of forms. The simplest option is a fixed-rate, fixed-term, unsecured bank loan. Alternatively, a company can sell loan stock, either unsecured or in the form of debentures. Mortgage debentures are secured against specified assets of the company (usually land and buildings), while other debentures are secured against the current and future assets of the company in general. The advantage [...]