Query by Jimmy S: what are debentures utilized for?
pro’s and cons of debentures

Greatest answer:

Answer by zurioluchi
In finance, a debenture is a extended-term debt instrument employed by governments and massive companies to get funds. It is equivalent to a bond except the securitization situations are various. The good is a debenture is usually unsecured in the sense that there are no liens or pledges on specific assets.
The bad element is it is nonetheless, secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are regarded general creditors.

The advantage of debentures to the issuer is they leave certain assets unencumbered, and thereby leave them open for subsequent financing.

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