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

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

Fitch anticipates that application of its new criteria will not negatively affect the ratings on EFC's senior or subordinate bonds.

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

342,000,000 subseries G-1 taxable subordinate bonds (Build America Bonds);

Fitch Rates New York City Transitional Finance Authority's $1.1B Bonds 'AAA'

NEW YORK -- Fitch Ratings upgrades and affirms various Idaho Housing and Finance Association's (IHFA) series 1996D-2000E single-indenture senior, mezzanine, and subordinate bonds.

Fitch Takes Various Rating Actions on Idaho Housing's 1996D-2000E Single Indentures