Home > Term: subordinated issue
subordinated issue
Bond issue where the lender contracts that his debt will rank behind some or all other debt on liquidation or bankruptcy of the issuer. In Switzerland banks may count up to 100% of their subordinated bond issues with a residual term of 5 years as part of their equity capital; this percentage decreases as the term gets shorter.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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