subordinated debenture bond


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 bond.
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 classes subordinated debt