Subordinate debt

Subordinate debt,

Definition of Subordinate debt:

  1. A security or loan ranking beneath other securities or loans when a claim on earnings or assets is involved. In the event a debtor defaults and a balance is listed as a subordinate debt, the creditor will not be paid off until any senior creditors were paid the amounts owed in full. Subordinate debts are a riskier proposition for lenders than unsubordinated debts.

Meaning of Subordinate debt & Subordinate debt Definition