A debt instrument issued at a fixed interest rate and secured only by the debtor’s reputation for honouring its payment obligations (i.e., by its creditworthiness), not by collateral or a lien on assets. The debtor in this case is typically a large company or a government that is seeking to raise capital over the long term at a low price. The term is used in some jurisdictions to mean note, bond, or loan stock. Debentures may be convertible (i.e., it may be converted into some other form of security, such as stock) or non-convertible (i.e., no such conversion into some other security is possible).