Subordinated Debt
Debt that ranks below senior debt in repayment order. In the event of default or bankruptcy, holders receive distributions only after senior creditors are repaid. It carries higher risk and requires higher returns and is a common component of the layered capital structures used to finance large infrastructure projects.
Timeline (last 90 days)
Subordinated debt refers to claims that rank behind senior debt in the repayment order; in a default, holders are paid only after senior creditors, so the risk is higher and the required return is higher too.
Large infrastructure financings often use a senior-plus-subordinated structure: senior debt is taken up by banks or insurance funds at lower rates, while subordinated debt is absorbed by private credit funds seeking high yields.
All Facts (2)
Subordinated debt refers to claims that rank behind senior debt in the repayment order; in a default, holders are paid only after senior creditors, so the risk is higher and the required return is higher too.
50%UnverifiedLarge infrastructure financings often use a senior-plus-subordinated structure: senior debt is taken up by banks or insurance funds at lower rates, while subordinated debt is absorbed by private credit funds seeking high yields.
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