Senior Lien Bond

A senior lien bond is a type of bond which holds priority over other bonds (junior lien bonds) with regards to claiming yields and principal repayment.

Example: You hold a senior lien bond issued by a company which went bankrupt. As a senior lien bond holder, you have priority in claiming repayment. Only if assets remain after senior lien bond holders have been repaid can junior lien bond holders can claim compensation.

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