A loan which ranks behind other debts if a company is wound up. For this reason subordinated loans are more risky that debt classed as senior or insubordinated debt. Subordinated debt usually commands a higher interest rate than higher-ranked debt.
A loan which ranks behind other debts if a company is wound up. For this reason subordinated loans are more risky that debt classed as senior or insubordinated debt. Subordinated debt usually commands a higher interest rate than higher-ranked debt.