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.

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.

References in periodicals archive ?
The automaker had announced last week that it is planning to raise USD500m through senior bonds.
2 February 2012 - Spanish commercial lender Banco Sabadell has launched the sale of senior bonds carrying an annual coupon of 4.
6m) series 11-A1 senior bonds of 407 International Inc, the operator of Canada's Highway 407.
4bn outstanding of unsecured debt or senior bonds that were not guaranteed by the government or secured on mortgages, as of February 18, Dow Jones has reported, citing a statement by the Central Bank of Ireland.
The senior bonds rating considers the strong payment interruption tolerance from aggregate pledged reserves which total 47% of combined senior bond par outstanding.
M2 EQUITYBITES-July 29, 2011--CARE keeps rating on senior bonds of ICICI Home Finance at AAA(C)2011 M2 COMMUNICATIONS http://www.
The Rating Outlook for the senior bonds and term loan is Stable.
BANKING AND CREDIT NEWS-April 27, 2011--Moody's rates JFM senior bonds at Aa2(C)2011 M2 COMMUNICATIONS http://www.
M2 EQUITYBITES-April 18, 2011--RAM Ratings cuts Idaman Capital super senior bonds to A1(C)2011 M2 COMMUNICATIONS http://www.
The information in Northampton's Continuing Disclosure is consistent with Fitch's prior expectations, and no new rating action on the senior bonds is anticipated at this time.
BANKING AND CREDIT NEWS-April 18, 2011--RAM Ratings cuts Idaman Capital super senior bonds to A1(C)2011 M2 COMMUNICATIONS http://www.
M2 EQUITYBITES-April 1, 2011--CARE reaffirms rating on senior bonds of ICICI Home Finance at AAA(so)(C)2011 M2 COMMUNICATIONS http://www.
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