• The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.

 Embedded terms in definition
Senior debt
Subordinated debt
 Referenced Terms
 Convertible securities hedge funds: Generally look to purchase the bonds or preferred securities and sell common shares against these long positions. The intent is to hedge interest or dividend paying securities with low or no dividend common shares. In the event of a default the bonds and other securities have priority to the common shares. Also, the bonds or preferred stocks usually generate positive cash flows whereas the short positions are generally not responsible for dividend payments. Therefore the fund should have a positive cash flow and protected by relative Seniority position in corporate securities. These funds also use warrants and options as portfolio instruments.

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Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

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