subordinated bonds or debentures

subordinated bonds or debentures
subordinated bonds or debentures
A bond that has a claim on the issuing firm's assets that is junior to other forms of debt in the event of a liquidation. The claims of subordinated debenture holders can be met only after all the claims of senior creditors have been met. Usually such bonds or debentures are not subordinate to general creditors but only to debt owed to a financial institution

Black's law dictionary. . 1990.

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