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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Subordinated bonds

References in periodicals archive ?

La Caixa raises 10-year subordinate bond issue

EFC MWFA's subordinate lien bondholders are afforded loan repayments from the MWFA, enhanced by reserves released after meeting any potential deficiencies for 1991 MFI bonds and EFC MWFA senior bonds, as well as pledged subordinate bond reserves for certain series totaling $44 million (less than 1% of outstanding subordinated bond principal).

Fitch Rts NY State Environmental Facil Corp's SRF Bonds for NY Water Bonds 'AAA'; Outlook Stable

The 'AA+' rating on the EFCNYC subordinate bonds is based primarily on the 'AA+' credit quality of loan repayments from the NYCMWFA, enhanced by reserves released after meeting any potential deficiencies for MFI bonds and EFCNYC's senior bonds, as well as pledged subordinate bond reserves for certain series totaling $52 million (3.

Fitch Rates NY State Environmental Facil Corp's SRF Bonds for NY Water Sub Bonds 'AA+'

NEW YORK -- Fitch Ratings has affirmed the senior student loan bonds at 'AAAsf' and the subordinate bond at 'Asf' issued by Education Lending Group, Inc.

Fitch Affirms Education Funding Capital Trust-IV Sr. & Subordinate Bonds

NEW YORK -- Fitch Ratings affirms the senior student loan bonds at 'AAAsf' and downgrades the subordinate bond to 'BBBsf' issued by Nelnet Student Loan Trust series 2005-1.

Fitch Affirms Senior Bonds & Downgrades Subordinate Bond of Nelnet Student Loan Trust, Series 2005-1

The 'AA+' rating on the EFCNYC subordinate bonds is based primarily on the 'AA' credit quality of loan repayments from the NYCMWFA, enhanced by reserves released after meeting any potential deficiencies for MFI bonds and EFCNYC's senior bonds, as well as pledged subordinate bond reserves totaling $36.

Fitch Rates NYSEFC's SRF Bonds for NY Water 'AAA'; Sub Bonds 'AA+'

The re-REMIC process creates two new bonds; a senior bond with greater credit protection and a subordinate bond with the same credit support as the underlying bond(s).

Fitch: 'AAA' U.S. Re-REMICs Insulated from Declining Mortgage Performance

Fitch's analysis of transactions to date shows that a pro rata pay structure may need 2-3 times as much credit support from the subordinate bond as a sequential pay structure.

Fitch: Higher Credit Support Needed for Certain U.S. Re-REMICs

8 million subordinate bonds are rated 'AA' and 'A+', respectively, and its general obligation pledge affirmed at 'A+'.

Idaho Housing $25.5M Senior Mortgage Bonds Rated 'AAA' By Fitch IBCA - Fitch IBCA -

New York City Transitional Finance Authority (NY) future tax secured subordinate bonds fiscal (Taxable Build America Bonds) series 2007B (refunded with new CUSIPs assigned);

Fitch Withdraws Ratings on Certain Municipal Bond Maturities

7 /PRNewswire/ -- Municipal Electric Authority of Georgia's (MEAG) $128 million project one subordinate bonds, series 1998A; $24 million general resolution projects subordinate bonds, series 1998A; and $19 million general resolution projects subordinate bonds, taxable series one are rated 'A-' by Fitch IBCA.

MEAG $172 Million Subordinate Bonds Rated 'A-' by Fitch IBCA - Fitch IBCA -

In addition, the $30,900,000 Tax-Exempt Fixed-Rate Subordinate Bonds, Series 1993B are affirmed 'AA', the $4,100,000 Tax-Exempt Fixed-Rate Subordinate Bonds, Series 1993C 'A', and the $50,000,000 Tax- Exempt Auction-Rate Senior Bonds, Series 1995A 'AAA'.

Volunteer State Funding Bonds 93A, 95A Affirmed 'AAA' By Fitch -- Fitch Financial Wire --