• Is a class of securities which have lower priority or claim against a borrower. Typically, these are unsecured obligations. They are also called Junior notes and bonds. This compares to Senior and Secured.
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| ||Debenture bond: An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare Subordinated debenture bond, and collateral trust bonds.|
| ||Junior debt subordinate debt: Debt whose holders have a claim on the firm's assets only after senior debt holder's claims have been satisfied. Subordinated debt.|
| ||Senior debt: Debt that, in the event of bankruptcy, must be repaid before Subordinated debt receives any payment.|
| ||Seniority: The order of repayment. In the event of bankruptcy, senior debt must be repaid before Subordinated debt is repaid.|
| ||Subordinated debenture bond: An unsecured bond issued only by creditworthy firms. The lenders' claims are the same as those of any general creditor, hence are Subordinated to other debenture holders and any bond issues that may be outstanding.An unsecured bond that ranks after secured debt, after debenture bonds, and often after some general creditors in its claim on assets and earnings. Related: Debenture bond, mortgage bond, collateral trust bonds.|
| ||Related Terms|
| ||Subordinated debenture|
Subordinated debenture bond
Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...
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