How NCDs are different from Bonds ?

Both NCDs (or Bonds) are fixed income instruments. There are some differences between NCDs and Bonds, however.

• Public companies issue NCDs, while large companies and financial institutions can issue bonds to raise capital.
• Bonds are usually secured while NCDs may be secured or unsecured.
• Priority to repay the debt at liquidation is given to the bondholders first and then to the debenture owners second.