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Subordinate Bond
(redirected from Subordinated bond)

   Also found in: Wikipedia 0.01 sec.
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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A subordinated bond is a financial instrument whose flotation proceeds can be funneled to replenish a financial institution's Tier 2 complementary capital.
375% undated subordinated bonds -- USD 500 million 7.
9 Kyodo The Bank of Tokyo-Mitsubishi UFJ said Monday it will issue subordinated bonds worth 200 billion yen for individual investors to strengthen its capital base.
 
 
 
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