Unsubordinated Debt

Unsubordinated debt, also known as a senior security or senior debt, refers to a type of obligation that must be repaid before any other form of debt. So, holders of unsubordinated debt have the first claim over a company’s assets or earnings if the debtor goes bankrupt or insolvent. Because unsubordinated debt comes with a guarantee of repayment, they are considered less risky than other types of debt.