Billiton Limited is listed on the ASX and is expanding its business operations into China. In order to expand, the company will need to raise additional funds through the issue of corporate bonds direct to the capital markets. Two securities that are often issued into the corporate bond market are debentures and unsecured notes. 

a) Discuss the structure and attributes of each of these securities. 

b) Within the context of a bond issued by a corporation, discuss the nature of a fixed and floating charge. 

c) Explain which types of borrowers will have access to funds through the issue of debentures and unsecured notes into the capital markets.

Answer rating: 100% (QA)

a Debentures and Unsecured Notes Debentures Debentures are debt instruments issued by a corporation to raise funds from the capital markets They are backed by the general credit of the issuing company ... View the full answer