GIGAMIND

Folder:
115 CFA
File:
115.070.06.02 Fixed Income - Reading 47 - 2. Seniority Ranking and Priority of Claims

2. Seniority Ranking and Priority of Claims

c. describe seniority rankings of corporate debt and explain the potential violation of the priority of claims in a bankruptcy proceeding;

In finance, what is does seniority refer to?
In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer.

If a debt issuer goes bankrupt does secured or unsecured debt take priority?
In general, secured debt takes priority over unsecured debt if the issuer goes bankrupt.


Source:
  • CFA