subordinated debt

noun

1. commerce a debt that an unsecured creditor can only claim, in the event of a liquidation, after the claims of secured creditors have been paid

Example Sentences

The proposal would extend the maturity of its outstanding senior debt and convert the subordinated debt into equity, the Bloomberg report said, adding that shareholders will need to inject new equity to avoid a severe dilution.

From Reuters

This was in response to a separate investor question posed to the committee to determine -- in the event that UBS was deemed the successor -- the impact of the merger on the transactions that had Credit Suisse as reference entity, particularly at the level of subordinated debt.

From Reuters

S&P also lowered credit ratings on First Republic's subordinated debt and preferred stock to 'D' from 'B-.'

From Reuters

AT1 bonds are a form of deeply subordinated debt that converts into equity or is written off if a bank’s capital levels fall below a certain threshold, depending on the terms of each individual instrument.

From Reuters

That means they have substantial buffer beyond the equity portion on the senior and subordinated debt.

From Reuters