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What does subordinated debt mean?

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subordinated debt
Noun


All debt that ranks after asset-based financing, senior secured term loans and unsubordinated debt but ahead of equity investments.

Synonym(s): 
  • junior debt.
Comment: 
Europe subordinated debt is any secured or unsecured debt that ranks behind senior debt but ahead of equity, while US subordinated debt is unsecured debt whose claims rank after those of the general creditors.
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