Definition of subordinated debt in English:

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subordinated debt

Pronunciation: /səˌbôrdnˌādid ˈdet/

noun

Finance
A debt owed to an unsecured creditor that can only be paid, in the event of a liquidation, after the claims of secured creditors have been met.
Example sentences
  • The company also won a 30 million euro waiver on some of its subordinated debt.
  • Certain transaction types are also a good fit for subordinated debt, including management buy-outs and acquisitions.
  • There could be a couple of different debt tiers, maybe using some kind of subordinated debt.

For editors and proofreaders

Syllabification: sub·or·di·nat·ed debt

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