Subordinated Debt: Subordinated debt generally refers to debt securities that have a secondary or lesser claim to the issuer’s assets than more senior debt, should the issuer default on its obligations. In fact, there are also levels of subordinated debt, with senior subordinated debt having a higher claim to repayment than junior subordinated debt.

 

Related Words

Subordinated Debt: Subordinated debt generally refers to debt securities that have a secondary or lesser claim to the issuer’s assets than more senior debt, should the issuer default on its obligations. In fac . . . View Full Definition

Senior Debt: Debt that must be repaid before subordinated debt receives any payment in the event of default.

Junior Debt (Subordinate Debt): Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Subordinated Debt (Junior Debt): Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt-holders receive payment only after senior debt is paid in full. A subordination of security interest . . . View Full Definition