Results for tag: "Subordinated Debt"

Subordinated debt is a type of debt instrument that ranks lower than other debt instruments in terms of priority for repayment in the event of a default. It is typically unsecured and subordinated to the claims of senior creditors. Subordinated debt is often used by companies to raise capital for expansion or to refinance existing debt. It is also used by banks to meet regulatory requirements. Subordinated debt is typically issued in the form of bonds, notes, or preferred stock. The terms of the debt are negotiated between the issuer and the investor, and the debt is usually structured with a fixed maturity date and a fixed interest rate. The issuer is typically required to pay a higher interest rate than on senior debt, as the investor is taking on more risk. Some companies in the subordinated debt market include Goldman Sachs, Morgan Stanley, Citigroup, JPMorgan Chase, Bank of America, and UBS. Show Less Read more