Series 65: 2.8.2. Subordinated Debentures

2.8.2. Subordinated Debentures

These are debentures that will be repaid only after other corporate debts, including regular debentures, have been satisfied. Subordinated debentures are generally issued by companies that have already borrowed a lot of money and need to borrow more. They have a high credit risk and thus pay out higher yields. The priority in liquidation, meaning the order that each type of security holder will be paid, is as follows.

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