A collateral trust bond is a bond that is secured by a financial asset—such as stock or other bonds—that is deposited and held by a trustee for the holders of the bond. A collateral trust bond is also called a collateral trust certificate or collateral trust note.Click to see full answer. Regarding this, what is a collateral trust certificate?Collateral Trust Certificate is a bond backed by the pledge of securities the issuer owns in another entity.Furthermore, what type of company would issue a collateral trust bond? Collateral trust bonds are secured by other securities, such as stocks and bonds. These are often issued by companies that own little or no real estate, but own a significant amount of securities. People also ask, what is a collateral trust agreement? Collateral Trust Agreement. A collateral trust agreement is a written agreement between the lender, the borrower, and the trustee. This type of agreement is also known as a deed of trust or a collateral trust certificate.Is a Trust Certificate A security?A trust certificate is a bond or debt investment, usually in a public corporation, that is backed by other assets. These assets serve a purpose similar to collateral.