Fixed Income

Seniority

Definition

What is Seniority?

The order in which claims are paid relative to other claims.

Example in practice

Secured senior debt has higher seniority than ordinary shares.

Keep learning

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.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.