Senior bond

Senior Bond

A bond that has higher priority compared to another in the event of liquidation. That is, if a company goes bankrupt and is liquidated, holders of a senior bond must be paid before holders of junior debt. It is a type of senior security. See also: Absolute priority rule.

Senior bond.

Senior bonds offer slightly lower interest rates than subordinated or junior bonds because they are considered less risky.

A senior bond has priority in interest payments, and if a bond issuer defaults, or runs into difficulty paying off debt, holders of senior bonds have a prior claim in receiving whatever monies are available.

References in periodicals archive ?
Global Banking News-May 8, 2015--China Minsheng mandates banks for senior bond issue
The bonds are the bank's Series-three 50 billion yen domestic senior bond, due March 20, 2007, and the Series-four 50 billion yen domestic senior bond, due March 20, 2012.
The senior bonds rating considers the strong payment interruption tolerance from aggregate pledged reserves which total 47% of combined senior bond par outstanding.
Global Banking News-July 16, 2013--Commonwealth Bank of Australia sells first senior bond issue in two months(C)2013 ENPublishing - http://www.
Global Banking News-3 August 2010-Morgan Stanley plans 10 year senior bond issue(C)2010 ENPublishing - http://www.
967 million from the senior bond debt service reserve fund.
MI) has said that it has issued a EUR500m two-year senior bond with a variable coupon and a yield of three-month Euribor rate plus 90 basis points.
9 billion, or 50% of outstanding EFCNYC senior bond principal.
PA) (LSE: BNP) (OTC: BNPQY) has sold its first euro-denominated, non-government-guaranteed senior bond to raise EUR1.
Subject to the terms and conditions of the 2031 Senior Bonds Offer, the total consideration to be paid for each validly tendered 2031 Senior Bond (which includes an amount paid in respect of the consent), is $25.
The indenture places a $12 billion limit on senior bonds outstanding; covenanted maximum allowable annual senior bond debt service is $1.
Subject to the terms and conditions of the tender offer and consent solicitation for the 2031 Senior Bonds, the total consideration to be paid for each validly tendered 2031 Senior Bond (which includes an amount paid in respect of the consent), will be $25.
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