in the event of default, which of the following is most likely to have the highest recovery rate?
A) Second lien
B) Senior unsecured
C) Senior subordinated

Name: in the event of default, which of the following is most likely to have the highest recovery rate? A) Second lien B) Senior unsecured C) Senior subordinated
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Question

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Second lien has a higher claim on the assets of the borrower than senior unsecured or senior subordinated debt, so it is more likely to have a higher recovery rate in the event of default.

In the Event of Default, Which of the Following Is