What are the differences between Unsecured and Secured NCD?

Unsecured vs Secured NCD Secured NCDs Unsecured NCDs These are backed by company assets In case of default, company assets can be liquidated to repay investors Offers lower returns than unsecured NCDs Less risky than unsecured NCDs These are not backed by company assets In case of default, investors cannot reclaim money through asset liquidation Offers higher returns than secured NCDs More risky than secured NCDs