Subordinated bonds

Subordinated bonds

Securities that fall after others in priority of claims on the entity in the case of financial distress.

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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The lender has approved a structural improvement plan that calls for the issuance of 10-year subordinated bonds worth KRW600bn.
Securities and Exchange Commission, assigned Asahi Mutual Life Insurance Company's (Asahi Life; Insurer Financial Strength: BBB-(Good)/Stable) USD430 million 6.5% step-up callable cumulative perpetual subordinated bonds with interest-deferral options a final rating of 'BB'.
According to the ecofin website, this loan is divided into 800,000 subordinated bonds with a nominal value of 100 dinars each.
While various measures are considered to improve capitalization, small to midsize insurers until recently were actively issuers of subordinated bonds. These bonds can be recognized as core capital (consists primarily of common stock and retained earnings) up to 15% of shareholders' funds and can be recognized as supplemental capital (includes mainly hybrid capital instruments, subordinated bonds and general loan loss reserve) up to 50% of shareholders' funds under current regulations.
(SeeNews) - Nov 12, 2012 - Spanish lender CaixaBank (MCE:CABK) will redeem in advance two issues of subordinated bonds for a total EUR 145 million (USD 195.9m), the bank said in a filing with the national stock market regulator CNMV on Friday.
According to the initial investigation of the Financial Supervisory Commission (FSC), some NT$300-400 billion of subordinated bonds issued by domestic banks cannot meet the new requirement and must be deducted from their capital from next year, necessitating capital increment for many banks.
China Minsheng Banking Corporation (1988.HK) has said that it was planning to sell CNY10bn (USD1.52bn) worth of subordinated bonds to boost its capital.
The bank acted as the sole mandated, lead arranger for a BTD 2.5 billion, seven-year, unsecured, fixed-rate dated subordinated bonds for Bangladesh's National Bank Limited.
on Friday offered 103.2 billion yen in subordinated bonds to cover redemptions of earlier-issued straight and subordinated bonds.
(1) We complement previous research that focuses on default probabilities by implicitly analyzing recovery rates as we compare the yields on senior and subordinated bonds.
China Everbright Bank has said that it would issue CNY5bn (USD732m) of 10-year subordinated bonds from December 15, Xinhua News said in a report.