Search results
Results from the WOW.Com Content Network
In finance, subordinated debt (also known as subordinated loan, subordinated bond, subordinated debenture or junior debt) is debt which ranks after other debts if a company falls into liquidation or bankruptcy. Such debt is referred to as 'subordinate', because the debt providers (the lenders) have subordinate status in relationship to the ...
Perpetual subordinated debt is subordinated debt in the form of a bond with no maturity date for the return of principal. Such a perpetual bond means it never needs to be redeemed by the issuer, and thus pay coupon interest continually until bought back (hence, "perpetual"). Like other subordinated debt, it has claims after senior debt (hence ...
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond , loan stock or note .
Bonds can be useful for adding a conservative component to an investment portfolio to balance out stocks or other high-risk securities. Debentures are a specific type of bond that government ...
In exchange, the company issues junior subordinated debt to the trust with essentially the same terms as the trust's preferred stock. All steps except the formation of the trust occur simultaneously. If the issuing company is a bank holding company, it will also usually guarantee the interest and maturity payments on the trust preferred stock.
These securities are subordinated obligations and fall at the very bottom of the operating insurance company's capital structure. They are issued primarily by mutual insurance companies, which are not public and are owned instead by their policy holders. Surplus notes are debt-like in that they pay a coupon and have a finite maturity.
subordinated (or junior) debt, including debenture bonds which are dependent upon the general credit and financial strength of the company for their security, [14] preferred stock, whose holders are entitled to have their claims met before those of common stockholders, [15] and; equity, which includes common stock and retained earnings. [16]
A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions, or to expand business. [1]