Senior Debt
Categories: Bonds, Muni Bonds
In companies who borrow a lot, there's usually a whole stack of debt. Layers upon layers of borrowings were done over years to build stuff and stave off peasant rebellions.
For instance, the cable industry borrows famously in many different "inventive" ways. Senior debt is the safest of that group; it sits on top of junior debt, which sits on top of debentures or unsecured debt.
In the event that the peasants do overrun corporate headquarters and the company goes belly-up for whatever reason, the senior debt is paid back first. And there's always the chance that junior debt won't get paid back at all.