junior debt

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Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.
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Junior Debt

A class of debt that, in the event of insolvency, is prioritized lower than other classes of debt. The most common kind of junior debt is an unsecured loan, which has no collateral. Another kind of junior debt is a secured loan in which another loan has priority on the collateral; a second mortgage is an example of a secured junior debt. This class of debt carries higher risk but also pays higher interest than other classes.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

junior debt

A class of debt that is subordinate to another class of debt issued by the same party. Junior debt is more risky for an investor to own, but it pays a higher rate of interest than debt with greater security. Debentures are junior debt. Compare senior debt.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The agency said that it did not rate subordinate debts of the institution.
23 December 2010 -- Moody's pulled out the ratings on two subordinate debt issues of Italian savings bank Cassa di Risparmio di Parma e Piacenza SpA (ISINs: IT0004505910, IT0004505902) to correct an internal clerical error.
The BOJ will study the details of the debt purchase scheme, including capping the upper limit of undertaking subordinate debts per financial institution.