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.

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.

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.
References in periodicals archive ?
- Senior subordinate debt rating (domestic currency): A2
- Junior subordinate debt rating (foreign currency): A3(hyb)
BANKING AND CREDIT NEWS-March 10, 2011--China Minsheng Bank said to issue CNY10bn subordinate debt in Mar(C)2011 M2 COMMUNICATIONS http://www.m2.com
10 March 2011 - China Minsheng Banking Corp (SHA:600016) plans to sell CNY10bn (USD1.5bn/EUR1.1bn) subordinate debt by the end of March, Reuters said yesterday citing two persons familiar with the deal.
M2 EQUITYBITES-March 10, 2011--China Minsheng Bank said to issue CNY10bn subordinate debt in Mar(C)2011 M2 COMMUNICATIONS http://www.m2.com
1 February 2011 - Fitch set on Tuesday a final AA(idn) rating to the ten-year IDR1.6trn (USD177m/EUR129m) subordinate debt of Indonesian PT Bank CIMB Niaga Tbk (JAK:BNGA).
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 agency said that it did not rate subordinate debts of the institution.
Subordinate Debt 300 300 CARE AA Subordinate Debt 300 300 CARE AA
Subordinate Debt 500 500 CARE AA Subordinate Debt 500 387.20 CARE AA
The BOJ will study the details of the debt purchase scheme, including capping the upper limit of undertaking subordinate debts per financial institution.