Asset-Light Debt

  

Like asset debt, but with fewer calories. Actually, it's a type of corporate borrowing where the money received gets secured with less collateral than usual. The debt is light on assets, as it were.
These types of debt structures were popular in the wild days of corporate finance during the mid-2000s. However, they lost luster with lenders and investors amid the financial crisis of 2007/2008 which almost ended the free world as we know it. Here's to calories.

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Finance: What are Junior and Senior Debt...7 Views

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Finance a la shmoop what are senior and junior debt? or like what's the

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difference between them well what are they they're debt in a bankruptcy senior

00:13

debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]

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jungle remember the debt stack? vendors to the

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company collect first then employees then the IRS of course because while

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they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]

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then come senior bonds then come junior then come unsecured bonds also known as

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debentures then subordinated debenture like debentures below debentures and

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there are all kinds of granular things in the bonds above we're very sorry if

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one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]

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the stack then there's preferred stock which collects after the most

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subordinated debentures collect generally and then finally there's

00:56

common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]

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