what happens if a company defaults on its bonds 
if a company goes bankrupt and defaults on its bonds bondholders have a claim on that company s assets but the type of bond whether that s secured or unsecured will determine the priority of a bondholder s claim a company going through bankruptcy will also have other creditors ultimately claims on the company s assets will be sifted through in bankruptcy court 5the bottom linethe maturity date of a bond or other debt instrument determines when the principal investment is repaid to investors at this point interest payments made to investors stop conservative investors may appreciate the clear time table outlining when their principal will be paid back when used in the context of loans a maturity date refers to the time when the borrower must pay back a loan in full 