Speaking very broadly, I's suppose it depends what is meant by "Bond" in the particular country or jurisdiction. Here in the UK there are lots of "Bonds"...it's really just another name for a loan. But, like any loan or mortgage, it may (or may not) be secured, perhaps on specific assets of a business.
Originally Posted by semi-ambivalent
I've not studied EK's account, but I suppose that Bonds could be secured on the specific collateral of patents or some other asset? IDK?
e.g. I have a mortgage loan on my house....I own the house, and the bank demands a rate of interest to reflect the risk of me not paying back their investment. However, if I went bankrupt, they would have a "first charge" on the house...so they would have their loan fully repaid from the sale of the house, before any other creditors had anything paid off their debts. Similar, if or when I move house, I have to arrange to either repay the bank, or arrange for the loan to be secured against the collateral of my next house.