subordinated debt

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Also found in: Financial.
Related to subordinated debts: Subordinated Debentures, Unsubordinated Debt

subordinated debt

n
(Commerce) commerce a debt that an unsecured creditor can only claim, in the event of a liquidation, after the claims of secured creditors have been paid
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References in periodicals archive ?
According to Reuters, under the new rules funds raised through subordinated debts would not be included as part of the capital base.
Subordinated debt valued at CNY150bn is being pushed into the market by Chinese banks as they strive to avoid the implications of the tougher issuance rules expected to be implemented by the year end.
"Lower Tier 2 debt issued by these leasing companies are rated three notches below their respective National Long-term rating, given weak recovery prospects an investor could expect on investments in these subordinated debts in the event of default," Fitch said
Banks can count subordinated debts as part of their supplementary capital because these instruments are given lower repayment priority than other forms of debt in exchange for higher borrowing rates.
Fitch Ratings has revised "Tunisie Leasing", "Arab Tunisian Lease," "Compagnie Internationale de Leasing" and "Attijari Leasing's subordinated debt issues' National Long-term ratings.