Debt that has preference over other debt obligation in terms of the issuer's capitalization is senior debt.

Name: Debt that has preference over other debt obligation in terms of the issuer's capitalization is senior debt.
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Senior debt is prioritized higher than other forms of debt and equity in terms of repayment in the event of a liquidation or bankruptcy, making it a preferred choice for lenders due to its relatively lower risk.

Debt That Has Preference Over Other Debt Obligation in Terms