35 years: Debt capital markets
As the name suggests, junior or subordinated debt holders contractually stand below all forms of senior debt. In this short video, Tim explains the risks associated with investing in subordinated debt and the reasons why borrowers issue this type of debt.
As the name suggests, junior or subordinated debt holders contractually stand below all forms of senior debt. In this short video, Tim explains the risks associated with investing in subordinated debt and the reasons why borrowers issue this type of debt.
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1 min 49 secs
Subordinated debt, sometimes called junior debt, is a layer of debt that is contractually subordinated to all forms of senior debt.
Key learning objectives:
Define subordinated debt
Learn the risk factor of subordinated debt for investors
Understand why investors buy subordinated debt
Explain senior subordinated debt
Identify the benefits of issuing subordinated debt over equity
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
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