Subordinate debentures are bonds whose claims are subordinate or junior to the claims of those holding debenture bonds.

Name: Subordinate debentures are bonds whose claims are subordinate or junior to the claims of those holding debenture bonds.
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Subordinate debentures are lower in priority than regular debentures, meaning that if a company runs into financial trouble, holders of subordinate debentures will be paid only after holders of regular debentures have been paid.

Subordinate Debentures Are Bonds Whose Claims Are Subordinate or Junior