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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 ...
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.
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 ...
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 ...
Subordination is the process by which a creditor is placed in a lower priority for the collection of its debt from its debtor's assets than the priority the creditor previously had, [1] In common parlance, the debt is said to be subordinated but in reality, it is the right of the creditor to collect the debt that has been reduced in priority.
Definition A corporate bond is a ... They can also be secured or unsecured, senior or subordinated, ... Debenture; Corporate debt bubble; Corporate debt by country;
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.
The security is a hybrid security with characteristics of both subordinated debt and preferred stock in that it is generally very long term (30 years or more), allows early redemption by the issuer, makes periodic fixed or variable interest payments, and matures at face value. In addition, trust preferred securities issued by bank holding ...