Senior debt takes priority over junior (also called subordinated) debt. Junior debt is only repaid with the funds left over after repaying senior debt.
Senior debt is not necessarily first in line to be paid: ...
Senior Debt
Are debt instruments that provide financing, take primary security against either specific or all assets of the borrower, have fixed terms of repayment and charge fixed or floating interest rates.
Subordinated Debt ...
Senior Debt:
A term used to describe debt instruments that are providing financing with primary security marked against either specific or all assets of the borrower.
Senior Debt. Debt that has contractually superior rights compared to other debt of a company.
senior debt
Obligations of an issuer for which repayment has contractually been given a priority that is higher than the repayment priority of other debts of the same obligor.
Senior Debt Debt which, in the event of liquidation, must be repaid before subordinated debt receives any payment. Also see Junior Debt.
Senior debt
Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment.
Secured debt
Debt that, in the event of default, has first claim on specified assets.
Senior Debt
A bond or other form of debt that takes priority over other debt securities sold by the issuer.
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Senior DebtExpand/Collapse
A senior debt issue ranks before other issues in terms of claims on assets in the event of a company break-up.
*Includes senior debt, mezzanine debt, high-yield debt, and vendor loans.
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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.
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Real estate: senior debt. See also Wraparound Mortgage.
Securities: municipal bond term referring to the debt of government entities within the jurisdiction of larger government entities for which the larger entity has partial credit ...
" Senior debt Debt whose terms in the event of bankruptcy, require it to be repaid before subordinated debt receives any payment. Senior mortgage bond A bond that, in the event of bankruptcy, will be redeemed before any other bonds are repaid.
senior debt A type of debt that has priority for repayment in a liquidation. senior refunding The exchange of bonds for other bonds with longer maturity durations. Opposite of junior refunding.
The debt held by a debtholder can be senior debt or subordinated. A debtholder possessing senior debt is in the most secure position, because senior debt obligations are paid ahead of subordinated ones.
Higher risk than senior debt as it will only be repaid in the event of corporate default after other debt has been repaid....(Read more)
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The fixed price an investor pays for shares in a new issue....(Read more) ...
In the event of a BANKRUPTCY, senior DEBT must be paid off before junior debt. Because junior debt has a lower chance of being repaid than senior debt, it carries more RISK, and thus typically pays a higher YIELD.
JUNIOR DEBT - Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt...
JUNIOR DEBT (SUBORDINATE DEBT) - Debt whose holders have a claim on the firm's assets only after senior...
securities that have a claim on the firm's assets only after the claims of holders of senior debt have been satisfied. The subordinated debt holder is in a much riskier position than the senior debt holders.
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Senior debt has a high priority if lenders have to reclaim funds, hence the issue terms can be less onerous for the borrower. Subordinated debt ranks lower down the scale, thus a borrower has to offer a lender more advantageous terms.
Agency bond Â- Corporate bond (Senior debt, Subordinated debt) Â- Distressed debt Â- Emerging market debt Â- Government bond Â- Municipal bond Â- Sovereign bond
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For example, senior debt generally has higher credit quality than subordinated debt of the same issuer. They also reflect the financial condition of the issuer, the issuer's industry and the issuer's home country.
In the event of bankruptcy of the borrower, senior debt takes priority over subordinated debt in terms of repayment of the relative debt claims.
Français: Dette subordonnée
Español: Deuda no prioritaria
Subordination: ...
Notes:
In the event of liquidation, senior debt holders have seniority and are repaid before the junior debt.
This is also known as "unsubordinated debt." ...
Mezzanine Debt: Refers to a type of debt which is between senior debt and equity. The cost of mezzanine debt is greater than senior debt as there is more risk involved.
Lehman Brothers Aggregate Bond Index
Market value-weighted U.S. index of fixed-rate senior debt instruments such as government and corporate bonds and asset-backed and mortgage-backed securities with maturities of at least one year.
Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.
Junior issue ...
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.
In case of bankruptcy the subordinated lenders must respect the order of repayment giving preference to specified creditors but in any case senior debt ranks behind equity.
Bibliography
Ross S. A., Westerfield R.W., Jaffe J.
Assets that remain after sufficient assets are dedicated to meet all senior debtholders claims in full.
Residual claim
Related: equity claim.
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.
The rights of the bondholder are subordinated to senior debt holders. Assurance of interest and principal payments in the future is limited. Repayment often depends on asset sales rather than on the ongoing profitability of the business.
These funds attempt to profit from price changes related to a variety of corporate actions, Most strategies involve purchasing or shorting elements of a company's capital structure and could involve senior debt, junior debt, convertible bonds, ...
A corporate bond issue, the collateral for which has been pledged as security for other more senior debt issues and is therefore subject to these prior claims.
Junior Debt
One or more junior bond issues.
Leveraged Finance offers innovative financing solutions to those companies involved in acquisitions, providing underwriting of leverage loans, bridge loans and senior debt.
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Junk bonds offer investors higher yields than those of financially sound companies, but with substantially higher risk. Junior debt Debt whose holders have a claim on the firm's assets only after senior debtholder's claims are satisfied.
They also describe the balance sheet as strong, despite the low common equity. It is only strong in the sense that the preferred equity and convertible debt would support more senior debt. We don't like the focus on earnings BEFORE pref. shares.
Residual assets Assets that remain after sufficient assets are dedicated to meet all senior debtholder's claims in full.
subordinated debenture A debenture that has a lower claim on the earnings and general assets of the corporation than more senior debt. Given the additional risk, subordinated debentures generally feature higher potential returns.
Residual See:Residual value Residual assets Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full.
 See also: Expense, Subordinated, Subordinated debt, Banks, Saving
  
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