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.
Mezzanine finance is a catch-all term covering various subordinated financing arrangements that include some element of equity. It includes subordinated debt issued with warrants, convertible subordinated debt, and preferred stock.
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 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 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 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.
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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 debt
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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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 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.
" 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.
effective net worth The value of shareholder's equity in a firm plus subordinated debt (debentures... effective par The par value for preferred stock that would ordinarily correspond to a given dividend rate.
Debt (Subordinated) Subordinated debt is now classified as a distinct line item within the overall MFI debt structure.
Yet another possible answer is to require every bank to finance a small proportion of its assets by selling subordinated DEBT to other institutions, ...
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 such as a junior mortgage is paid after unsubordinated, or senior, debt. The junior mortgage is sometimes called a second mortgage. The senior mortgage is called the first mortgage.
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....
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 ...
Similar financial terms
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.
PERQs are intermediate equity-linked debt instruments representing either senior or subordinated debt of the issuer.
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 ...
A regulatory definition of bank capital. Tier 2 capital consists of subordinated debt, intermediate-term preferred stock, cumulative and long-term preferred stock, and a portion of the bank's allowance for loan and lease losses.
TIGRS ...
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 ...
Quasi-Equity: A type of deeply subordinated debt security or senior equity security (e.g., preferred shares) whose holders are paid before ordinary shareholders but after senior debt holders.
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 ...
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.
Debt whose holders have a claim on the firms assets only after senior debtholders claims have been satisfied. Subordinated debt.
Junk bond ...
Common stock represents the residual economic and ownership interest in a firm after all superior claims have been settled. Holders of preferred stock, subordinated debt, secured debt, ...
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.
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.
These securities generally have a term of 30 to 40 years, pay a fixed rate monthly or quarterly income, offer five years of call protection, and benefit from various protective covenants usually associated with subordinated debt.
We have the ability to offer creative, flexible and value-added capital solutions. The structure of our investments is dependent on the nature of the situation, but can span from subordinated debt to preferred equity.
fund managers to companies which are in a growth phase, but may not have access to equity capital or are unwilling to dilute their existing shareholdings. Alternatively, traditional bank finance may not be available. (See also Subordinated Debt).
Several rating agencies assess the default risk of public debt issuances and provide a rating that is indicative of credit quality. The credit quality is greater for secured/collateralized senior debt than for unsecured subordinated debt issued by...
Subordinated debt. Junior issue A debt or equity issue from one corporation over which the issue of another firm takes precedence with respect to dividends, interest, principal, or security in the event of liquidation.
 See also: Subordinated, Senior debt, Banks, Expense, Funding
  
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