Series 6: 4.2.9.2. Subordinated Debentures

Taken from our Series 6 Top-off Online Guide

4.2.9.2.  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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