A secured bond is a bond that is backed by some kind of collateral like property or asset of the Issuer. In case the Issuer is an NBFC, a secured bond is generally backed by the collaterals behind a pool of personal, gold, and vehicle loans provided by the NBFC to its borrowers. The term senior in a 'senior' secured bond indicates that, in case of a default, these bondholders enjoy higher priority in getting repaid than some other types of investors like equity-holders, sub-debts etc.