Fixed Income Course Note
Issuer根据five sectors: public utilities, transportation, banks/finance, industrials, and Yankee美国 and Canadian.The latter includes dollar-denominated bonds issued in the United States by sovereign governments, non-U.S. local governments, non-U.S. corporations, and foreign branches of U.S. corporations.公司的capital structure:一般有 common stock, preferred stock, and debt.In capital structure decision-making:Although optimal capital structure and the optimal debt structure is important in corporate finance and in credit risk modeling, 这门课只关心 seniority structure.seniority structure:The different creditor classes are classified as follows: senior secured debt, senior unsecured debt, senior subordinated debt, and subordinated debt.1. Senior secured debt is backed by or secured by some form of collateral beyond the issuer’s general credit standing.抵押的形式:Either real property (using a mortgage) or personal property may be pledged to offer security.A mortgage bond 给投资者lien against the pledged assets: legal right to sell the mortgaged property to satisfy unpaid obligations that are owed——现实中不常见foreclosure and sale of mortgaged propertyTo satisfy the desires of bondholders for security, they will pledge stocks, notes, bonds or whatever other kind of obligations they own. collateral trust bonds:secured by such assets.2. Senior unsecured debt: is debt that is not secured by a specific pledge of property, 但仍然有 claim on property of issuers or on their earnings. The bonds that are issued with priority against claims are commonly referred to as debenture bonds.4. subordinated debt rank after senior secured creditors, after senior unsecured creditors, and often after some general creditors in their claim on assets and earnings. The class of debt that has seniority within the ranks of subordinated debt is referred to as 3. senior subordinated debt.

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Optimal Debt Structure And Senior Unsecured Debt. (April 3, 2021). Retrieved from