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.
