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Post# of 729922
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LuckyPanda

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LuckyPanda

Re: hotmeat post# 628528

Friday, 07/10/2020 2:28:05 AM

Friday, July 10, 2020 2:28:05 AM

Post# of 729922
Yes, technically they were unsecured...but in reality they are because the bank was solvent and because assets were much greater than liability. Otherwise, the investors would have simply bought the bank stock. Bond investors would not have invested bonds if the underlying net assets over liability did not comfortably exceed the amount of bond offered.
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