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Home > QFINANCE Dictionary > Definition of unsecured creditor

Definition of

unsecured creditor

Finance

creditor making unsecured loans a creditor who is owed money, but has no security from the debtor for the debt. Unsecured creditors are at risk of losing everything, as official procedures may absorb most of the money remaining after a business failure and small creditors may not be paid.

Recommended Further Reading (Term count)
  • Minimizing Credit Risk
    by Frank J. Fabozzi
    Financial corporations and investors face several types of risk. One major risk is credit risk. Despite the fact that market participants typically refer to “credit risk” as if it is one-dimensional, there are actually three forms of this risk: credit default risk, credit spread risk, and downgrade risk.Credit default risk is the risk that the issuer will fail to satisfy the terms of the obligation with respect to the timely payment of interest...
unsecured creditor - Related Articles

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    According to a report by Moody’s, many of the sukuk structures applied have been effectively reduced to a form that is identical to conventional unsecured bonds. Most asset-basedsukuk may have the form of asset-backed sukuk, but not the substance.4 In other words, although most sukuk have assets
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Definitions of ’unsecured creditor’ and meaning of ’unsecured creditor’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’unsecured creditor’ and other financial terms with our online QFINANCE Financial Dictionary.

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