Security owners' rights or claims to a company's assets are second, or subordinate, to another class of security owners; often used often in association with bonds or preferred stock
A class of securities which have lower priority or claim against a borrower Typically, these are unsecured obligations They are also called Junior notes and bonds This compares to Senior securities
a security with a lower priority than others when dividends and assets are distributed in liquidations or bankruptcies
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