Senior bond

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
M2 EQUITYBITES-May 8, 2019-Arsted decides on green senior bonds issue
Senior bonds are subject to a $330 million limit on quarterly debt service.
Real estate company Klovern AB (STO:KLOVA) announced on Monday the appointment of Nordea and Swedbank as financial advisors to investigate market conditions for an increase of the SEK800m outstanding hybrid bond loan, which is subordinated to Klovern's outstanding senior bonds.
The world's largest online television network is selling $1.9 billion of senior bonds in its largest dollar-denominated offering.
French industrial gas supplier Air Liquide (PAR: AI) has closed the placement of five -denominated senior bonds for an aggregate amount of USD 4.5bn, that constitute the third and last step in refinancing its acquisition of US-based industrial gas supplier Airgas, the company said.
The issue ratings of unsecured senior bonds in foreign and local currency by Panama are also rated 'BBB'.
We bought into the bank's senior bonds in December 2013 and topped up our holdings in February this year.
has assigned 3 ratings to the domestic senior bonds issued by the Japan Finance Organization for Municipalities (JFM).
Tata Motors Limited (NYSE: TTM), is offering an annual yield of 5.625 percent on 2023 senior bonds.
The senior bonds will have a size of IDR2trn (USD211m/EUR171m) and will be offered in October, he said during the presentation of the bank's first-half financial results.
9 September 2011 - German dialysis care provider Fresenius Medical Care (ETR:FME) successfully finalised the placement of its euro- and US dollar-denominated senior bonds with total proceeds of approximately USD950m (EUR686.5m), the firm said today.
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