Debentures & Corporate FD’s
When money is raised by any institution in the form of loan is known as debentures. Generally the interest is high and the duration of maturity is low in such instruments as compared to the government bonds. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). They don’t have collaterals.
Fixed deposits offered by the companies that are not registered as banks are known as corporate FD’s. They could be involved in a variety of businesses and may require capital for running their businesses. When they do, they issue deposit certificates to investors of different tenures at fixed interest rates.
Debentures & Corporate FD’s get the ratings by the different rating agencies on the different parameters to suggest the level of stability or paying back capacity of the company.
Such instrument may or may not be listed in the stock exchange for the buyback option.