2006-10-19 10:41:21 · 5 answers · asked by donbuggsblack 1 in Business & Finance ➔ Investing
It's actually a bond (debt instrument), not a stock. In the breakdown of seniority (important if the company goes bankrupt), this would rank higher than common and preferred stock, and higher than junior unsubordinated bonds.
Unsubordinated notes are not backed by collateral, so they are riskier than subordinated notes, which are backed by collateral. They usually have a lower credit rating than subordinated debt of the company, and therefore their yield is usually higher. Also, in a liquidation, unsubordinated notes get a lower priority (and a lower recovery amount) than more senior, subordinated debt.
2006-10-19 12:25:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I believe that means a note that is at the top of the food chain in regards to credit obligations. Preferred and Common stock might come in ahead of any note, but unsubordinated means that there are no other credit obligations with a higher priority.
2006-10-19 17:50:04 · answer #2 · answered by united9198 7 · 0⤊ 0⤋
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2006-10-20 00:19:23 · answer #3 · answered by stock.geek 2 · 0⤊ 0⤋
thats an old timer who lives in the city
2006-10-19 17:43:24 · answer #4 · answered by tomtoride 4 · 0⤊ 0⤋
Kazink is right. Please pay attention to his answer. Although "old timer in the city" is a good chuckle.
2006-10-19 21:20:33 · answer #5 · answered by strath 3 · 0⤊ 0⤋