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 debt instruments will be the bank's first senior bond sale since September 2010.
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.
M2 EQUITYBITES-January 4, 2012--BofA Merrill Lynch, Morgan Stanley, UBS take part in Rabobank senior bond sale(C)2012 M2 COMMUNICATIONS http://www.
BANKING AND CREDIT NEWS-January 4, 2012--BofA Merrill Lynch, Morgan Stanley, UBS take part in Rabobank senior bond sale(C)2012 M2 COMMUNICATIONS 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.
M2 EQUITYBITES-June 13, 2011--Fitch attaches final AA-(idn) rating to senior bond of Bank Tabungan(C)2011 M2 COMMUNICATIONS http://www.
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