Subordinated Debt is a junior security which will be serviced after the Unsubordinated Debt in the event of a company bankruptcy.
Subordinated Debt has been deemed less important than the Unsubordinated Debt that a company has taken on, in terms of what priority it will have for payment in the event of company default. The amount of money and length of term on the loan are considerations when making this distinction.
What priority a bond has in the event of insolvency can be an important consideration for an investor pursuing high yield bonds. Generally the highest yielding bonds are at the highest risk of default, and sometimes they live up to their unfortunate moniker of “junk bonds.”
When collateralized debt obligations are divided into tranches, the unsubordinated debt will be in the A tranche, while the B and C tranches will contain the subordinated debt.
A put time spread is an options strategy that has the investor implementing a short put and a long put at the same price
It’s not likely that a cash-balance plan will allow for early withdrawals. Generally speaking, you can’t withdraw money
Each person can contribute up to the annual gift tax exclusion amount, which in 2016 is $14,000 per beneficiary. 529 plan
Despite how it sounds, this publication is not meant for tourists to the US, but rather for non-US-citizen workers
Many studies have investigated the benefits of purchasing IPOs, and the results might surprise you
The Rising Wedge pattern forms when prices seem to be spiraling upward, and two upward sloping trend lines are created
The Energy Sector contains companies that are in the business of discovering, processing, or selling (or all 3)
The total United States national debt is $19.3 trillion as of fiscal year (FY) 2016
The Random Walk Hypothesis states that in an efficient market, prices will correlate around the intrinsic value