subordinated

subordinated
subordinate, subordinated, subordination
Debts or claims that have a lower status or priority than other debts or claims are subordinate. For example, creditor A may agree in a subordination agreement to have its claims on the cash flow or on the assets of a borrower lower in priority than ( i.e., subordinate to) the claims to that cash flow or collateral by creditor B. In finance and accounting, the term also refers to debts that include provisions making them subordinate to other liabilities. For example, a bond issue may, by contractual agreement, be subordinate to all other bonds issued by a company. American Banker Glossary
————
A claim ranked lower in priority than other claims. common stock claims are always subordinated to debt. Bloomberg Financial Dictionary

* * *

subordinated sub‧or‧di‧nat‧ed [səˈbɔːdneɪtd ǁ -ɔːr-] adjective
subordinated bond/​debt/​loan etc FINANCE a bond, debt etc which will be repaid only after all other debts and loans have been paid if the borrower gets into financial difficulty:

• The company has $230 million in bank debt and $285 million in subordinated debt.

* * *

subordinated UK US /səˈbɔːdɪnət/ adjective [before noun] (also subordinate) FINANCE
used to describe a loan that will be paid back after other loans, if the person borrowing money gets into financial difficulty: »

Franklin Auto Loan Funding issued senior and subordinated certificates to three institutional investors.

»

The group has approximately $41 million of subordinated debt outstanding.

Compare MEZZANINE(Cf. ↑mezzanine), SENIOR(Cf. ↑senior)

Financial and business terms. 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • subordinated — + subordination/subordinated An arrangement where one creditor or group of creditors (the junior creditor(s)) agrees not to be paid by a borrower or other common debtor until another creditor or group of creditors (the senior creditor(s)) have… …   Law dictionary

  • Subordinated — Subordinate Sub*or di*nate, v. t. [imp. & p. p. {Subordinated}; p. pr. & vb. n. {Subordinating}.] 1. To place in a lower order or class; to make or consider as of less value or importance; as, to subordinate one creature to another. [1913… …   The Collaborative International Dictionary of English

  • subordinated — /seuh bawr dn ay tid/, adj. Finance. noting or designating a debt obligation whose holder is placed in precedence below secured and general creditors: subordinated debentures. [SUBORDINATE + ED2] * * * …   Universalium

  • subordinated — /seuh bawr dn ay tid/, adj. Finance. noting or designating a debt obligation whose holder is placed in precedence below secured and general creditors: subordinated debentures. [SUBORDINATE + ED2] …   Useful english dictionary

  • subordinated debt — Debt that is unsecured and/or ranks for interest and repayment after the senior debt of a company. Subordinated debt may rank below senior debt in the following ways: • Repayment of principal. The more senior the debt, the earlier it will be due… …   Law dictionary

  • subordinated debenture — ➔ debenture * * * subordinated debenture UK US (also subordinate debenture) noun [C] FINANCE ► SUBORDINATED BOND(Cf. ↑subordinated bond) …   Financial and business terms

  • subordinated notes — ➔ note1 * * * subordinated notes UK US noun [plural] FINANCE ► notes (= loans for short periods) where the company or person lending the money will be paid back after others, or will receive a smaller amount than they are owed, if the person… …   Financial and business terms

  • subordinated bond — UK US (also subordinate bond) noun [C] (also subordinated debenture) FINANCE ► a bond that will be paid back after other bonds, if the issuer (= company or government offering it for sale) gets into financial difficulty: »Banks regularly issue… …   Financial and business terms

  • subordinated notes — USA Also known as subordinated debt. Junior debt that ranks behind senior debt and is repayable in bankruptcy proceedings after other senior debt has been paid. Related terms mezzanine debt Practical Law Dictionary. Gloss …   Law dictionary

  • subordinated bonds — or debentures A bond that has a claim on the issuing firm s assets that is junior to other forms of debt in the event of a liquidation. The claims of subordinated debenture holders can be met only after all the claims of senior creditors have… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”