Subordinated debt

Subordinated debt,

Definition of Subordinated debt:

  1. A debt owed to an unsecured creditor that can only be paid, in the event of a liquidation, after the claims of secured creditors have been met.

  2. Bond, debenture, stock (share) which, by its general nature, takes a lower (subordinate) priority to another (senior) securitys claims on the assets and earnings of the issuer for the payment of dividend, interest, and principal. Holders of senior securities are paid before the holders of the junior securities. For example, common stock (ordinary shares) is junior to preferred stock (preference shares), which are junior to debentures (unsecured bonds), which are junior to mortgage (secured) bonds. Hence, in case of the liquidation of the issuing firm, mortgage bonds will be paid first and ordinary stock the last. Also called subordinated debenture, subordinated security, junior debt, junior security.

How to use Subordinated debt in a sentence?

  1. If you find yourself in subordinated debt you need to work your way out as fast as you can to keep a good reputation.
  2. The company also won a 30 million euro waiver on some of its subordinated debt.
  3. The subordinated debt was not going to be served this month as there were higher priority claims made on this project.
  4. You should know any subordinated debt that you may be able to get and figure out if it will be beneficial for you.

Meaning of Subordinated debt & Subordinated debt Definition

Subordinated Debt,

Subordinated Debt Definition:

Definition of Subordinated Debt: Subordinate liabilities (also known as subordinate liabilities) are unsecured debts or obligations that are subject to another debt or preferential bond in connection with asset or benefit claims. Therefore, subordinate bonds are also called junior bonds. If the debtor fails to repay, the debtor of the defaulted debt will pay only after full payment of the senior debt securities.

  • Debt bonds are bonds that are settled after full payment of the principal debtor.
  • This is more risky than non-performing liabilities and is shown in the balance sheet as long-term liabilities when not subordinated.

Less debt than other accounts payable in the case of company liquidation Therefore, defaulted loans pose a higher risk than classified loans in the senior or non-default category. Debt loans are usually at a higher interest rate than senior loans.

Literal Meanings of Subordinated Debt

Subordinated:

Meanings of Subordinated:
  1. Lower rank or location.

  2. A person under the authority or authority of another person in an institution.

  3. It treats you or makes you feel less important than anything else.

Sentences of Subordinated
  1. NCO

  2. He is especially kind to his subordinates

  3. Practical superiority is secondary to political gain.

Synonyms of Subordinated

lower-ranking, junior, lower, lesser, inferior, lowly, minor, supporting, assistant, second, second in command, number two, right-hand man, right-hand woman, deputy, aide, adjutant, subaltern, apprentice, underling, flunkey, minion, lackey, mate

Debt:

Meanings of Debt:
  1. Some, usually money, debt or debt.

Sentences of Debt
  1. I paid my debt

Synonyms of Debt

bill, account, tally, financial obligation, outstanding payment, amount due, money owing

Subordinated Debt,

What Does Subordinated Debt Mean?

  1. A mortgage loan (also called a mortgage loan) is an unsecured loan or loan that takes precedence over other loans or securities in terms of debt or income claims. Therefore, subordinate bonds are also called junior bonds. In case of default by the borrower, the subordinate notes will not mature till the senior notes are paid to the lender.

    • Subordinate obligations are obligations that are paid in the second year after the payment of the central debtor.
    • This is more dangerous than an irresponsible liability and is shown on the balance sheet as a long term liability after an irresponsible liability.

  2. A simple definition of Subordinated Debt is: A loan that is less than other loans in the event of a business suspension. Because of this, subordinate loans are more risky than senior or non-performing loans. Subordinate bonds generally have higher interest rates than senior bonds.

Literal Meanings of Subordinated Debt

Subordinated:

Meanings of Subordinated:
  1. Treat it or make it less important than anything else.

Sentences of Subordinated
  1. Practical ideas were subject to political expediency.

Debt:

Meanings of Debt:
  1. The amount of money owed

Synonyms of Debt

check, debits, charges, score, arrears, dues, tab