Junior Debt

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Dictionary Says

Definition of 'Junior Debt'

Junior debt is debt that is either unsecured or has a lower priority than of another debt claim on the same asset or property. It is a debt that is lower in repayment priority than other debts in the event of the issuer's default. Junior debt is usually an unsecured form of debt, meaning there is no collateral behind the debt.
Investopedia Says

Investopedia explains 'Junior Debt'

In the event that the issuing company goes out of business, the junior debt has a smaller probability of being paid back, either with money or with assets, since all higher-ranking debt will be given priority. Junior debt is also called subordinated debt, due to its position in the debt hierarchy. One common junior debt is the seconds mortgage which ranks behind the first mortgage and has a lesser claim in the event of default.

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'Junior Debt'

  • Distressed Debt An Avenue To Profit In Corporate Bankruptcy

    http://www.investopedia.com/articles/bonds/08/profit-from-bankruptcy.asp
    ... If the company has $8 million of assets, $8 million of senior debt, and $2 million
    of junior debt, the senior debt might be a great buy, but the junior debt ...

  • Advanced Bond Concepts: Bond Type Specifics | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond1.asp
    ... On the other hand, if you own a subordinated (junior) debt security, you will get
    paid out only after the senior debt holders have received their share. ...

  • The Time For Junior Miners Is Now

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    ... With debt problems both here and in Europe, slowing global economic growth and ... Get
    Free Stock Analysis By Email. Nothing Junior About Them Some investors have ...

  • Why Interest Coverage Matters To Investors

    http://www.investopedia.com/articles/basics/04/040804.asp
    ... The short answer is that all debt - whether short-term debt, senior debt or junior -
    should be considered equal in the calculation of the interest-coverage ...

  • 5 Basic Things To Know About Bonds

    http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
    ... to investors. Senior debt is paid first, then junior (subordinated) debt,
    and stockholders get whatever is left over. (To learn ...

  • Last-Minute Strategies To Help Pay For College

    http://www.investopedia.com/articles/younginvestors/07/last-minute-saving.asp
    ... It may be more financially sound to have Junior take on the debt for his own schooling,
    but make sure to discuss this option with a financial advisor before ...

  • A Primer On Preferred Stocks

    http://www.investopedia.com/articles/stocks/06/preferredstock.asp
    ... the same guarantees as interest payments from bonds and they are junior to all ... Type
    of Security As observed earlier, preferred stock is equity; bonds are debt. ...

  • 9 Ways To Use A Tax Refund Slideshow | Investopedia

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    ... Put Junior Through College. ... saving for college means a financial sacrifice now, it
    will save your child from having to take on an enormous debt load when he or ...

  • 9 Ways To Use A Tax Refund Slideshow | Investopedia

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    ... Put Junior Through College. ... saving for college means a financial sacrifice now, it
    will save your child from having to take on an enormous debt load when he or ...

  • 9 Ways To Use A Tax Refund Slideshow | Investopedia

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    ... Put Junior Through College. ... saving for college means a financial sacrifice now, it
    will save your child from having to take on an enormous debt load when he or ...

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