Fixed Income

Senior Debt

Definition

What is Senior Debt?

Debt that ranks ahead of subordinated claims in repayment priority.

Example in practice

Senior lenders are paid before junior bondholders in liquidation.

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A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

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