释义 |
Subordinated bonds Subordinated bondsSecurities that fall after others in priority of claims on the entity in the case of financial distress.Subordinate BondA class of bond that, in the event of liquidation, is prioritized lower than other classes of bonds. For example, a subordinate bond may be an unsecured bond, which has no collateral. Should the issuer be liquidated, all secured bonds and similar debts must be repaid before the subordinated bond is repaid. A subordinate bond carries higher risk, but also pays higher returns than other classes. See also: junior debt. |