Subordinated Debt

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Dictionary Says

Definition of '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".
Investopedia Says

Investopedia explains 'Subordinated Debt'

In the case of default, creditors with subordinated debt wouldn't get paid out until after the senior debtholders were paid in full. Therefore, subordinated debt is more risky than unsubordinated debt.

Search results for

'Subordinated Debt'

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    http://stocks.investopedia.com/stock-analysis/2011/Three-Reasons-To-Own-PennantParks-Little-Sister-PFLT-PNNT-BKLN-FLTR1115.aspx
    ... there. Essentially there are five main types of debt: revolving, term loan,
    senior debt, subordinated debt and mezzanine debt. Often ...

  • Solar Capital's Stellar Yield

    http://stocks.investopedia.com/stock-analysis/2010/Solar-Capitals-Stellar-Yield-SLRC-ARCC-AINV-MSC-PNNT0723.aspx
    ... million. The biggest portion of its investments is in subordinated debt
    and corporate notes, which represent 77% of the portfolio. ...

  • Using Economic Capital To Determine Risk

    http://www.investopedia.com/articles/economics/08/economic-capital.asp
    ... Tier 2 (supplementary) capital: includes elements such as general loan loss reserves,
    certain forms of preferred stock, term subordinated debt, perpetual debt ...

  • Assessing Bank Assets: Are Your Savings Safe?

    http://www.investopedia.com/articles/fundamental-analysis/09/assessing-bank-assets.asp
    ... reserves. In bankruptcies, common shareholders are third in line behind
    subordinated debt holders and preferred shareholders. In ...

  • Triangle Capital Yields Good Results

    http://stocks.investopedia.com/stock-analysis/2011/Triangle-Capital-Yields-Good-Results-TCAP-MCGC-PNNT-BKCC-PSEC0925.aspx
    ... Each investment averages between $5 million and $15 million, primarily consisting
    of subordinated debt with a smaller equity component. ...

  • Stocks To Guard Your Portfolio

    http://stocks.investopedia.com/stock-analysis/2010/Stocks-To-Guard-Your-Portfolio-JNJ-C-ABT-MRK0701.aspx
    ... Fitch Ratings affirmed the AAA credit rating on June 28. This rating was maintained
    across senior unsecured debt, issuer default ratings and subordinated debt. ...

  • Was It Really A Bailout?

    http://stocks.investopedia.com/stock-analysis/2010/Was-It-Really-A-Bailout-HIG-DFS-MS-GS0323.aspx
    ... preferred stock that was issued under the CPP. The company is raising $350
    million in subordinated debt to help replace the capital. ...

  • 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 ...

  • 3 Reasons To Own Loews

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Loews-L-CNA-DO-BWP-KO-BRK.A0512.aspx
    ... privately held HighMount Exploration, Loews Hotels and Boardwalk Pipeline's general
    partner, not to mention Class B shares and subordinated debt in Boardwalk ...

  • Is Your Bank On Its Way Down?

    http://www.investopedia.com/articles/fundamental-analysis/09/tier-1-capital-ratio.asp
    ... of Tier 2 capital that includes secondary bank capital elements, such as undisclosed
    reserves, hybrid debt and equity instruments, and subordinated debt . ...

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