Unsubordinated Debt

Unsubordinated Debt

A loan or security that ranks above other loans or securities with regard to claims on assets or earnings. Also known as a senior security.

Notes:

In the case of default, creditors with unsubordinated debt would get paid out in full before the junior debt holders. Therefore, unsubordinated debt is less risky than subordinated debt.

See also: Absolute Priority, Bankruptcy, Bond, Debt, Junior Security, Loan, Senior Security, Subordinated Debt