Dictionary

Senior ranking

From the Collaborative Bond and Money Market Data Portal 

 

Ranking refers to the order of repayment in the event of a sale or bankruptcy of the issuer. The term Seniority is also used. When an Issuer is wound up, each Debt Instrument has a specific seniority or ranking in terms of repayment. Senior debt is repaid before subordinated debt. Within Subordinated Debt, Tier3 gets paid first, followed by Upper Tier2, followed by Lower Tier 2, followed by Tier 1. 

 

In theory, after Subordinated Debt Instrument holders have been paid, and if relevant, preference share holders are followed by ordinary shareholders. Shareholders are for example not relevant in the context of sovereign and sovereign like borrowers.

 

Accordingly, in the Collaborative Bond and Money Market Data Model the field Ranking consist of the following attributes:

  • Senior
  • Tier3
  • Upper Tier2
  • Lower Tier 2
  • Tier 1
  • (Sub Undisclosed Tier)

The latter is used when the Subordinated rank is not clear.

 

Based on available data, on the 1st of December 2015, the size of the Vanilla Senior International Bond Market was USD25trn equivalent, through 109,912 different issues.

 

For information on the size of the Senior Bond Market, please use our data sheet tool.
For information on the composition of the Senior Bond Market, please use our issuer search tool.
For information on active dealers in the Senior Bond Market, please use our dealer search tool.
 

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