Subordinated debenture
Subordinated debenture is a debenture that has claims on assets, in the event of bankruptcy, only after senior debt (as named in the subordinated debt's indenture) has been paid off. Subordinated debentures may be subordinated to designated notes payable or to all other debt.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Subordinated debenture. Debentures that have claims on assets, in the event of bankruptcy, only after senior debt (as named in the subordinated debt's indenture) has been paid off. Subordinated debentures may be subordinated to designated notes payable or to all other debt.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
