Your English writing platform
Discover LudwigSuggestions(1)
'subordinated debt' is a correct and usable term in written English.
You can use it when referring to debt that ranks below other debts should the debtor become insolvent or bankrupt. For example, "The company had to take out a large amount of subordinated debt to stay afloat during the recession."
Exact(58)
Why, then, does subordinated debt add discipline?
Junior subordinated debt, which ranks next in the queue, trades at 15-45 cents on the dollar and senior subordinated debt at 65-70 cents.
The firm also closed on TA Subordinated Debt Fund II LP, or TA SDF II, a $777.5 million capital subordinated debt fund.
While this would hurt subordinated debt holders, a deferral of interest payments has even broader ramifications.
In a 2000 report, the Fed studied requiring banks to hold subordinated debt, but the idea went nowhere.
One popular way of boosting the figures is to include unrealised gains on equities and subordinated debt.
Wait, says Einhorn: If the senior debt is at a discount, shouldn't the riskier subordinated debt be marked down, too?
Second, it leaves ambiguous the important issue of who gets protected in the event of insolvency the equity holders, creditors, subordinated debt holders, etc.
This is why the subordinated-debt holder is a better disciplinarian than the banks' owners.Given all this, subordinated debt does not sound very attractive.
Subordinated debt (uninsured certificates of deposit) is simply junior debt.
Similar(1)
And subordinated debt-holders might have to take a loss, which could mean and who's holding that subordinated debt?
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com