A debt that places its holders second in line in the case of bankruptcy or default. Second lien debt holders receive compensation from property or other collateral after first lien debt is covered, making this type of loan a riskier investment. For example, a company issuing a homeowner a second mortgage will be able to claim assets only after the company issuing the first mortgage has completed its claim.
Related information about second lien debt:
- Second lien loan - Wikipedia, the free encyclopedia
However, second lien debt can often reduce the overall cost of capital in a leveraged buyout transaction, replacing other more expensive forms of financing (e.g., ...
- Second Lien Debt Definition | Investopedia
Debts that are subordinate to the rights of other, more senior debts issued against the same collateral, or a portion of the same collateral. If a borrower defaults, ...
- What is second lien debt? definition and meaning
Definition of second lien debt: A debt that places its holders second in line in the case of bankruptcy or default. Second lien debt holders receive compensation ...
- REAL ESTATE: BofA extinguishes 2nd lien debt | Breaking News ...
Oct 1, 2012 ... The second-lien debt elimination program won't eliminate the ... The second-lien debt will be treated separate from any issues that may be ...
- Second Lien Debt Historical Recovery - Moody's
Second lien debt recoveries were moderately higher (within 7 percentage points ... Investing in second lien debt – particularly if it is the most junior ranking ...
- Bank Watch: BofA cancelling second-lien debt for up to 150,000
Sep 28, 2012 ... Bank of America announced Friday that it is sending letters to 150,000 homeowners eligible for automatic cancellation of their second-lien ...
- Second-lien volume jumps amid demand from relative-value - Forbes
2 days ago ... Of course, second-lien debt is a niche product for issuers that require higher leverage than is usually available in the first-lien market, but that in ...
- Calculated Risk: Second-Lien Debt Worries
May 8, 2007 ... Second-Lien Debt Worries. by Bill McBride on 5/08/2007 03:36:00 PM. "People are taking out these loans and they realize they can't make ...