Debt over which senior debt takes priority. In the event of bankruptcy,' SUBORDINATED DEBT' holders receive payment only after senior debt claims are paid in full. There is a pecking order determining the sequence in which a company will pay off its debt instruments, subordinate (or junior) issues will not be repaid until unsubordinated (or senior) debt has been repaid in full.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). SUBORDINATED DEBT. Retrieved September 21, 2026, from http://smartdefine.org/subordinated_debt/definitions/1164473 |
| Chicago | Barry Goldsmith. 2010. "SUBORDINATED DEBT" http://smartdefine.org/subordinated_debt/definitions/1164473 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, SUBORDINATED DEBT, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/subordinated_debt/definitions/1164473>. |
| MLA | Barry Goldsmith. "SUBORDINATED DEBT" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/subordinated_debt/definitions/1164473> |