Subordinated debt

(redirected from subordinated debts)
Also found in: Dictionary.
Related to subordinated debts: Subordinated Debentures, Unsubordinated Debt

Subordinated debt

Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.

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.

Subordinated debt.

Subordinated debt generally refers to debt securities that have a secondary or lesser claim to the issuer's assets than more senior debt, should the issuer default on its obligations.

In fact, there are also levels of subordinated debt, with senior subordinated debt having a higher claim to repayment than junior subordinated debt.

References in periodicals archive ?
The year to date value of subordinated debt issued is CNY100.
Fitch said the review is part of a broad review of Fitch-rated subordinated debts. All the four Tunisian leasing companies' rated subordinated debt issues are Lower Tier 2 issues.
Fitch Ratings has revised Tunisie Leasing, Arab Tunisian Lease, Compagnie Internationale de Leasing and Attijari Leasing's subordinated debt issues' National Long-term ratings.
Tunisie Leasing: National Subordinated debt rating: downgraded to 'BB+(tun) from 'BBB-(tun)'
Arab Tunisian Lease: National Subordinated debt rating: downgraded to 'BB(tun)' from 'BB+(tun); removed from Rating Watch Negative