Subordinated debt is debt that is either unsecured or has a lower priority than that of another debt claim on the same asset or property; also called junior debt

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Subordinated debt, also known as junior debt, is ranked below other debts in terms of claims on assets or earnings. In the event of a liquidation, subordinated debt holders are paid out after the holders of senior debt, making it riskier.

Subordinated Debt Is Debt That Is Either Unsecured or Has