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Nobody with any sense issues a personal bond if he can float a secured loan for half the price.
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For example, imagine a bankrupt company with property worth $100 and a secured loan from a bank of $125.
Mr. Icahn leads a group that will buy a secured loan from the Beal Bank, which is first in line among creditors, and agreed to back the lender's reorganization plan for Trump Entertainment, according to a statement Friday.
But in March, the company announced that it would borrow $200 million in a secured loan from Oaktree Capital.
One of the most tragic pleas for help we received at Cashquestions.com was from a woman who bought her council house under a right-to-buy scheme, then took out a secured loan from one of the afternoon TV loan companies.
Under the terms of the deal, Nokia said it would pay 1.2 billion euros to Siemens for the joint venture, and 500 million euros in the form of a secured loan from the German company that must be repaid one year after the transaction is completed.
You could obtain a secured loan from a bank or building society/ finance company (up to £250k).
Carl C. Icahn's High River Limited Partnership raised its offer to buy as much as $331 million of the senior secured loans of XO Communications Inc., a telephone and Internet service provider that filed for bankruptcy protection earlier this year.
"I had to pay £416 each month for my mortgage with RBS and a £627 payment for a secured loan with NatWest.
Carefully consider the risk before opting for any secured loan.
When deciding on a monthly payment amount, be sure to give yourself a little safety cushion, especially for a secured loan.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com