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.

Use subordinated bonds in a sentence

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

​ Was this Helpful? YES  NO 5 people found this helpful.

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

​ Was this Helpful? YES  NO 4 people found this helpful.

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

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
subordinated subordinated classes