Seniority (financial)
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- For other uses, see Seniority
In finance, seniority refers to the order of repayment in the event of bankruptcy. Senior debt must be repaid before subordinated debt is repaid. Bonds that have the same seniority in a company's capital structure are described as being pari passu.
The levels of bond recognised in FpML (Financial products Markup Language) are as follows:
| FpML Value | Desription |
|---|---|
| Senior | Top precedence |
| SubTier1 | Subordinate Tier 1 |
| SubUpperTier2 | Subordinate, Upper Tier 2 |
| SubLowerTier2 | Subordinate, Lower Tier 2 |
| SubTier3 | Subordinate, Tier 3 |
[edit] See also
- Senior debt
- Subordinated debt
- Pari passu
- Security interest
- Debtor-in-possession financing
- Second lien financing
- Secured creditor
- Unsecured creditor
- Preferential creditor
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