Subordinated Debt

Subordinated debt is a loan that ranks below other debts—such as senior debt—when it comes to repayment. If the borrower defaults, subordinated lenders are paid only after senior creditors have been satisfied.

It often sits behind a second mortgage in property lending, making it riskier for lenders but potentially offering higher returns.

DISCLAIMER: The information provided on this page is for general informational and educational purposes only and is never intended as financial advice. While we strive to ensure that the content is accurate and up-to-date, it may not reflect the most current legal or financial developments. Always consult with a qualified financial advisor or professional before making any financial decisions. Use the information at your own risk.

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