mathman9761 mathman9761

08-03-2018
Business

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"which type of debt is given preference in the event of default"

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MrsTriplet MrsTriplet

17-03-2018

Senior debt is given preference in the event of debt default.

The order in the hierarchy is:
Senior Debt
Subordinated Debt
Preferred Equity
Common Equity

From top to bottom this order shows the lowest to highest risk but the highest priority of repayment to lowest priority of repayment.

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