Bond Principles: Classification of Bonds Method 2 By security a unsecured debt backed by faith in the taxing power of the government, or the good name of the company(debenture) b. secured debt e.g. revenue bond, assessment bond, mortgage, collateral trust bond, equipment trust certificate Bond security sometimes comes from non-traditional sources. Recently, some rock stars floated bonds using their future earnings as backing Strong c4- Bond fundamentals 4-54 - 5 Strong C4 – Bond Fundamentals a. unsecured debt - backed by faith in the taxing power of the government, or the good name of the company (debenture) b. secured debt e.g. revenue bond, assessment bond, mortgage, collateral trust bond, equipment trust certificate Bond security sometimes comes from non-traditional sources. Recently, some rock stars floated bonds using their future earnings as backing. Method 2: By security Bond Principles: Classification of Bonds