Series 65: Subordinated Debentures

Taken from our Series 65 Online Guide

Subordinated Debentures

These are debentures that will be repaid only after other corporate debts, including unsubordinated debentures, have been satisfied. Subordinated debentures are generally issued by companies that have already borrowed a lot of money and need to borrow more. They have a high credit risk and, thus, pay out higher yields.

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Solomon Exam Prep Study Materials for the Series 65
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