Subordinated bonds


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Subordinated bonds

Securities that fall after others in priority of claims on the entity in the case of financial distress.

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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These bonds can be recognized as core capital (consists primarily of common stock and retained earnings) up to 15% of shareholders' funds and can be recognized as supplemental capital (includes mainly hybrid capital instruments, subordinated bonds and general loan loss reserve) up to 50% of shareholders' funds under current regulations.
According to the initial investigation of the Financial Supervisory Commission (FSC), some NT$300-400 billion of subordinated bonds issued by domestic banks cannot meet the new requirement and must be deducted from their capital from next year, necessitating capital increment for many banks.
1m) worth of subordinated bonds, Dow Jones has reported, citing a person familiar with the sale.
2 billion yen in subordinated bonds to cover redemptions of earlier-issued straight and subordinated bonds.
0 million series A tranche 3 subordinated bonds AA-
375% undated junior subordinated bonds -- "aa-" on EUR 0.
PK), China's third-largest bank, has said that China Banking Regulatory Commission has approved the bank to issue subordinated bonds in the country.
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.
The subordinated bonds rating considers reserves released after meeting potential deficiencies for NYSEFC master financing indenture (MFI) bonds and Environmental Facilities Corporation (EFC) NYCMWFA (EFCNYC) senior bonds and any excess 2010 MFI cash flows.
24bn) worth of subordinated bonds to resupply its capital base, Dow Jones has reported, citing a person familiar with the matter.
30, Mizuho will return 225 billion yen it received in the form of subordinated bonds, while Mitsui will repay 40 billion yen it received in the form of a subordinated loan.
NYSE: CXP) announced today that its wholly-owned subsidiary, Republic Holding Corporation, has completed a tender offer for Republic Holding's 91/2% subordinated bonds due 2008, with $89,992,000 of principal amount of bonds tendering.