Senior Security

Senior Security

A security (usually debt) that, in the event the issuer goes bankrupt, must be repaid before other creditors receive any payment.

Notes:

In the event of liquidation, senior debt holders have seniority and are repaid before the junior debt.

This is also known as "unsubordinated debt."

See also: Absolute Priority, Bankruptcy, Bond, Junior Security, Liquidation, Subordinated Debt, Unsubordinated Debt

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Senior security

A security that, in the event of bankruptcy, will be redeemed before any other securities.