   
|
|
Junior Debt
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
Junior debt is a debt (such as a bond) that is lower in repayment priority than other debts in the event of the issuer's default. Junior debt is usually unsecured, meaning that there is no collateral behind it. In the event that the issuing company goes out of business, the junior debt will likely not be paid back, either with money or with assets, since all higher-ranking bonds will be given priority. Junior debt is also called subordinated debt, due to its position in the debt hierarchy. One common junior debt is the second mortgage, which ranks behind the first mortgage and has a lesser claim in the event of default. Junior debt naturally carries more risk than higher-priority debts.
Rate this junior debt definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |