Senior Security

What does it mean?
A security (usually debt) that, in the event the issuer goes bankrupt, must be repaid before other creditors receive any payment.

In Other Words...
In the event of liquidation, senior debt holders have seniority and are repaid before the junior debt.

This is also known as "unsubordinated debt."

Related Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Related Terms
Absolute Priority | Bankruptcy | Bond | Junior Security | Liquidation | Subordinated Debt | Unsubordinated Debt

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