What means Debt securities?

Debt securities, also known as debt certificates, are bonds not listed on any stock exchange. Issued by both corporations and governments, these instruments come with varying conditions. Particularly, government bonds, a type of debt securities, are considered safer due to the government's reliable reputation for debt servicing.

Debt securities serve as a means for companies and governments to borrow money. Investors in these securities generally receive a fixed rate of interest, and their principal amount is repaid at the end of the maturity period.