Subordinate Bond

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Subordinate Bond

A class of bond that, in the event of liquidation, is prioritized lower than other classes of bonds. For example, a subordinate bond may be an unsecured bond, which has no collateral. Should the issuer be liquidated, all secured bonds and similar debts must be repaid before the subordinated bond is repaid. A subordinate bond carries higher risk, but also pays higher returns than other classes. See also: junior debt.
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8 million subordinate bonds are rated 'AA' and 'A+', respectively, and its general obligation pledge affirmed at 'A+'.
New York City Transitional Finance Authority (NY) future tax secured subordinate bonds fiscal (Taxable Build America Bonds) series 2007B (refunded with new CUSIPs assigned);
7 /PRNewswire/ -- Municipal Electric Authority of Georgia's (MEAG) $128 million project one subordinate bonds, series 1998A; $24 million general resolution projects subordinate bonds, series 1998A; and $19 million general resolution projects subordinate bonds, taxable series one are rated 'A-' by Fitch IBCA.
The senior and subordinate bonds are secured by MWFA loan repayments; debt service reserve funds (consisting of separate reserve funds for senior bonds and subordinate bonds); interest earnings from the debt service reserve funds; and deallocated (released) reserves from the EFC's 1991 master financing indenture (MFI) bonds, which are available first to cure deficiencies in the EFC 1991 MFI and MWFA senior bonds and then the MWFA subordinate bonds.
In addition, the $30,900,000 Tax-Exempt Fixed-Rate Subordinate Bonds, Series 1993B are affirmed 'AA', the $4,100,000 Tax-Exempt Fixed-Rate Subordinate Bonds, Series 1993C 'A', and the $50,000,000 Tax- Exempt Auction-Rate Senior Bonds, Series 1995A 'AAA'.
Fitch anticipates that application of its new criteria will not negatively affect the ratings on EFC's senior or subordinate bonds.
The senior and subordinate bonds are secured by NYCMWFA loan repayments, debt service reserve funds (separate reserve funds for senior bonds and subordinate bonds), interest earnings from the debt service reserve funds, and deallocated (released) reserves from the NYSEFC MFI bonds, which are available first to cure deficiencies in the senior bonds and then the subordinate bonds.
Fitch has also assigned Stable Rating Outlooks to the senior and subordinate bonds.
342,000,000 subseries G-1 taxable subordinate bonds (Build America Bonds);
The senior bonds are further secured by released reserves from the statewide MFI pooled loan program, after meeting any potential deficiencies for MFI senior and subordinate bonds.
NEW YORK -- Fitch Ratings upgrades and affirms various Idaho Housing and Finance Association's (IHFA) series 1996D-2000E single-indenture senior, mezzanine, and subordinate bonds.