subordinated debt

Popular Terms
Bond, debenture, stock (share) which, by its general nature, takes a lower (subordinate) priority to another (senior) security's 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.

Use 'subordinated debt' in a Sentence

If you find yourself in subordinated debt you need to work your way out as fast as you can to keep a good reputation.
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The subordinated debt was not going to be served this month as there were higher priority claims made on this project.
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You should know any subordinated debt that you may be able to get and figure out if it will be beneficial for you.
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