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Finance: What are Junior and Senior Debt? 7 Views
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What's the difference between senior and junior debt? No matter the differences, we know the similarity: you don't want to be in either of them.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Bonds
- Terms and Concepts / Credit
- Terms and Concepts / Financial Theory
- Terms and Concepts / Managed Funds
- Terms and Concepts / Metrics
- Terms and Concepts / Muni Bonds
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Transcript
- 00:00
Finance a la shmoop what are senior and junior debt? or like what's the
- 00:07
difference between them well what are they they're debt in a bankruptcy senior
- 00:13
debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]
- 00:18
jungle remember the debt stack? vendors to the
- 00:21
company collect first then employees then the IRS of course because while
Full Transcript
- 00:26
they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]
- 00:29
then come senior bonds then come junior then come unsecured bonds also known as
- 00:35
debentures then subordinated debenture like debentures below debentures and
- 00:39
there are all kinds of granular things in the bonds above we're very sorry if
- 00:43
one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]
- 00:47
the stack then there's preferred stock which collects after the most
- 00:52
subordinated debentures collect generally and then finally there's
- 00:56
common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]
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