Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494417
Subordination What is subordination? Subordination is an "arrangement" in which one creditor is not paid by a debtor until after another creditor is paid Why do we care? • Debt which has been subordinated ranks below or junior to other debt on the insolvency of a debtor • Impacts credit risk; ratings Types of subordination: 1. Structural subordination 2. Lien/Effective subordination 3. Contractual subordination 4. Temporal subordination