financial

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

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