subordinated bonds


A category of bonds that have lower priority than other bonds during liquidation. Unsecured bonds without collateral are subordinated bonds because secured bonds would be repaid before the subordinated bonds. Subordinated bonds are higher risk, and therefore may generate higher returns. Also called subordinated debenture bond.

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You should try and make sure that you get in at the right time on any subordinated bonds you want to take on.

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The subordinated bonds were unlikely to be involved in the transactions today as these classes of securities had low priority.

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Charles was very adventurous and loved taking risks so with the hope of a higher return, he put $10,000 into subordinated bonds.

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subordinated subordinated classes