Subordinated debt
Subordinated debt (also called junior debt) is debt that takes a lower priority than other debt.
Debt that takes higher priority is called senior debt.
Subordinated debenture bond
An unsecured bond that ranks after secured debt, after debenture bonds, and often after some general creditors in its claim on assets and earnings. Related: debenture bond, mortgage bond, collateral trust bonds. ...
subordinated
junior in claim on assets to other debt, that is, repayable only after other debts with a higher claim have been satisfied.
subordinated claim
unsecured debt
Claims on a corporation's assets can be broken down into equity, debt and "other," where "other" might include taxes, accounts payable or worker wages.
JUNIOR SUBORDINATED NOTES - See equity tranche.
JUNK BOND - Junk bonds carry a higher-than-average risk of default, which means that the bond issuer ma...
Subordinated Debt
Debt instruments that provide financing for acquisitions, expansion and restructuring, take secondary security against assets, have fixed or flexible terms of repayment and charge fixed or floating interest rates.
Subordinated Debenture - A debt that is junior in claim on assets to other debt and is repayable only after all other debts with a higher claim have been satisfied.
Subordinated Debentures: Corporations will meet their obligations to holders of more senior securities before paying their debts to holders of subordinated debentures. The latter's rights are subordinated to those of other creditors.
Subordinated Debt:
Where one lender has agreed in writing to rank behind another, typically a bank will insist that any shareholder loans be subordinated to any loan the bank has made.
Subordinated Debentures: ...
Subordinated Debt. Debt securities (also referred to as junior debt) that have granted superior rights in favor of another lender to the company (also called senior debt).
Subordinated debt:
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 ...
Subordinated Debenture
A debenture whose claim to interest and principal of the corporation comes after those of regular debentures and other debt securities.
Subscription Right ...
Subordinated debt - If a company is liquidated (i.e. becomes insolvent ), the secured creditors are paid first. If any money is left, the unsecured creditors are then paid.
Subordinated Liabilities
A debt whose holder has a secondary or junior claim to other general creditors.
Subordinated
A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt.
Subordinated bonds ...
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.
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.
Subscription price ...
Subordinated Debt (Junior debt) Debt whose holders, in the event of liquidation, get paid only after senior debt is paid off in full. (Also see senior debt) ...
Subordinated-term debt
Subordinated debt is classed as Lower Tier 2 debt, usually has a maturity of a minimum of 10years and ranks senior to Tier 1 debt, but subordinate to senior debt.
Subordinated - Security owners' rights or claims to a company's assets are second or subordinate, to another class of security owners; often used often in association with bonds or preferred stock.
Subordinated: The subordinated party accepts a lower priority of repayment and/or security than the senior party.
Subsidiary: A foreign operation incorporated in the host country and owned 50% or more by a parent company.
Subordinated bonds are those that have a lower priority when compared to other creditors and bondholders incase of bankruptcy and liquidation. If the issuing corporation goes bankrupt, the creditors are paid first.
Subordinated debentures have a lower priority in bankruptcy than ordinary (unsubordinated) debentures. Junior claims are generally paid only after senior claims have been satisfied but rank ahead of preferred and common stock.
- ...
Subordinated - Is a class of securities which have lower priority or claim against a borrower. Typically, these are unsecured obligations. They are also called Junior notes and bonds. This compares to Senior and Secured.
Subordinated debt generally refers to debt securities that have a weaker claim for repayment than unsubordinated debt, should the issuer default on its obligations.
Subordinated Debt
A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings.
Also known as a "junior security" or "subordinated loan".
Subordinated debt
Debt whose payment claims are not exercisable until all other debtors claims have been satisfied. From the point of view of the superior debt claimants, subordinated debt functions as cushion similar to equity.
Supplier Credit ...
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
subordinate, subordinated, subordination
Debts or claims that have a lower status or priority than other debts or claims are subordinate.
Debt (Subordinated) Subordinated debt is now classified as a distinct line item within the overall MFI debt structure.
A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes. Pacific Stock Exchange Used for listed equity securities.
" 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 Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment. Seniority The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.
Effective net worth Net worth plus subordinated debt. Effective rate A measure of the time value of money that fully reflects the effects of compounding.
subordinated This is when somebody's position is reduced to that of a junior in priority of claim. subordinated debt This type of debt is not secured or is subordinated in priority to that of another...
Compare subordinated debenture bond, and collateral trust bonds. Debt/equity ratio Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders.
The headcount has to include all employees, persons working for the enterprise being subordinated to it and considered to be employees under national law, owner-managers, partners engaged in a regular activity in the enterprise, ...
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.
Yet another possible answer is to require every bank to finance a small proportion of its assets by selling subordinated DEBT to other institutions, ...
A junior mortgage is a mortgage that is subordinated to some other mortgage or lien. Subordinated debt such as a junior mortgage is paid after unsubordinated, or senior, debt. The junior mortgage is sometimes called a second mortgage.
Mezzanine capital refers to subordinated debt which is payable after all other debts if a company closes. Mezzanine capital is either in the form of debt or preferred stock.
Subordinated Debt
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)
Subscription Price
The fixed price an investor pays for shares in a new issue....
In the other, connexions are formed between individuals and between groups, which are subordinated to a higher unity in order to achieve a common object. In this manifestation the guiding principle is that of mutual aid.
The investor is not required to hold to maturity of the subordinated securities to be traded on the secondary market debt market. It is a theory. The fact is that these tools are not very liquid and there are few buyers.
Debt can also be classified as senior or subordinated, based on its preference to assets in the event of default by the lender.
For example, when a large bank gets into financial difficulty the government can offer holders of high risk subordinated debt the chance to swap their debt for lower risk government backed securities.
This is also known as "unsubordinated debt."
See also: Absolute Priority, Bankruptcy, Bond, Junior Security, Liquidation, Subordinated Debt, Unsubordinated Debt
? Mentioned in
Closed-end Indenture ...
SUBORDINATE " To place a claim below others. (1) Subordinated Debenture: An unsecured bond which has a junior claim to all other general creditors. (2) Subordinated working interest. See: Reversionary Working Interest.
A form of unsecured, unsubordinated debt, exchange-traded notes (ETNs) are issued by an underwriting bank and are backed by the credit of the issuer.
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
Types of bonds by payout ...
Introduced to the Canadian market in March 1999, as long-term junior subordinated debt instruments. This type of security offers features that resemble both long-term corporate bonds and preferred shares.
Canadian Payments Association ...
Capital plus minority interests plus subordinated loans.
Capital coverage ratio
Available capital divided by required capital.
Revolving credit and term loan bank facilities
Fixed and floating rate senior secured notes
Subordinated notes (with and without warrants)
Redeemable preferred stock with warrants
Convertible debt and preferred stock
Common equity ...
The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.
Sensitive market
A market that reacts to a great extent to good or bad news.
Sensitivity analysis ...
An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond and collateral trust bonds.
[ Previous Page ]
Personal Finance Glossary ...
Aggregate indebtedness: A firm's unsecured liabilities, including any customer-related liabilities. Aggregate indebtedness does not include subordinated agreements or loans fully collateralized either by fixed assets such as real estate or by the ...
Composed of credit card, auto, and home equity loans. Included in the index are pass-through, bullet (noncallable), and controlled amortization structures; no subordinated tranches are included.
Tier I comprises share capital and disclosed reserves, whereas Tier II includes revaluation reserves, hybrid capital and subordinated debt. Further, Tier II capital should not exceed Tier I capital. The risk weightage depends upon the type of assets.
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.
Debt whose holders have a claim on the firms assets only after senior debtholders claims have been satisfied. Subordinated debt.
Junk bond ...
 See also: Banks, Funding, Expense, Subordinated debt, Convertible Bond
  
|
RSS
