Okuzeka
Finance & Banking vocabulary · Corporate Finance

Subordinated debt

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, subordinated debt means: Debt ranking below specified other debt in the order of repayment or loss allocation.

In Turkish: sermaye benzeri borç, alt sıradaki borç

How it is used

Subordination describes ranking; whether it qualifies as regulatory capital requires separate assessment.

Example sentences

  1. The subordinated debt would be paid after the senior creditors in this structure.

    Ranking determines which creditors receive payment first.

  2. The bank disclosed the maturity and loss terms of its subordinated debt.

    The label alone does not describe every contractual feature.

Common collocations

  • issue subordinated debt
  • subordinated debt instrument
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.