Junior Lien Bond

A junior lien bond or subordinate lien bond is a bond which can only be claimed on after one or more additional bonds have been satisfied.

Example: You hold a junior lien bond issued by a company which went bankrupt. The company’s senior lien bond holders have priority in demanding repayment. If assets remain after senior lien bond holders have been repaid, you as a junior lien bond holder can claim compensation.

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