NCD stands for Non-Convertible Debentures. NCDs are debt instruments that provide fixed returns. NCDs are issued by Corporates to raise capital.
NCDs and Bonds are both debt instruments that return fixed income to the investor. The few differences between NCDs and Bonds are listed below.
NCDs are issued by Corporates, whereas Bonds are issued by Government entities.
In most cases, NCDs offer a higher interest rate than Bonds which are secured while NCDs can be secured or unsecured.
Bonds are considered senior debt securities; hence during liquidation, bondholders are paid first and then debenture holders.