Definitions for "Subordinated"
Terms of a security indicating that, in the event of financial distress, principal and interest are paid only after claims of other security holders are settled.
A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt.
Junior in priority of claim.
Subordinated bonds Subordinated debenture bond
Used to indicate seniority on a bond. A subordinated debenture will be paid after an unsubordinated debenture.
Refers to a promise to pay or a security with a promise to pay which cannot legally be fulfilled until payments on certain other obligations have been made and any other conditions (defined in the indenture) have been met. These other obligations are said to be senior to the subordinated obligation.