Obligations of an issuer for which repayment has contractually been given a priority that is lower than the repayment priority of other debts of the same obligor. This arrangement may arise from either a specific subordination agreement or a public issuance of subordinated debt instruments. American Banker Glossary
————
(subordinate debt ; subordinated debt)
debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. subordinated debt. Bloomberg Financial Dictionary
* * *
* * *
junior debt UK US noun [U] FINANCE
► debt that will not be paid back by a company that goes bankrupt until other debts have been paid: »
It is understood that the shareholder loans will be junior debt in the company's capital structure, and will be used before the bank debt to provide funds for the roll-out of the service.
Financial and business terms. 2012.