what is subordinated debt 
subordinated debt also known as a subordinated debenture is an unsecured loan or bond that ranks below other more senior loans or securities with respect to claims on assets or earnings subordinated debentures are thus also known as junior securities in the case of borrower default creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full investopedia candra huffunderstanding subordinated debtsubordinated debt is riskier than unsubordinated debt subordinated debt is any type of loan that s paid after all other corporate debts and loans are repaid in the case of borrower default borrowers of subordinated debt are usually larger corporations or other business entities subordinated debt is the exact opposite of unsubordinated debt in that senior debt is prioritized higher in bankruptcy or default situations subordinated debt repayment mechanics