In second para of return in unsecured loan stocks :- The yield margin over government bonds tends to be a little higher than for debentures in a given company to reflect the extra risk. I am not able to understand this line. Why yield margin between government bonds and debentures is compared in unsecured loan stocks return. Is there any printing mistake that is unsecured loan stocks should come in place of government bonds ? Thanks in advance
Its just saying that yield margin over government bond is higher for unsecured loan stock than debenture of same company for eg if yield on government bond is 6% than for debenture might be 8% , and yield on unsecured loan stock will be more than 8% here they are actually comparing the yield on government bond with unsecured loan stock and debenture of same company
