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Home > QFINANCE Dictionary > Definition of junior capital

Definition of

junior capital

Stockholding & Investments

capital representing stockholders' equity capital in the form of stockholders' equity which is repaid only after the secured loans forming the senior capital have been paid if the firm goes into liquidation

junior capital - Related Articles
  • Borrowing Costs and Capitalization

    Calculations

    capital structure, and capital-intensity of the business. Understanding each of the components of credit quality provides a clear picture of the determinants of a company’s cost of debt financing. Borrowing costs also include the expenses incurred to issue debt securities.

  • The Liquidity Factor

    Viewpoints

    This is a simple illustration of the effect of the Basel III changes to the definition of capital on shariah banks’ and conventional banks’ cost of capital. Under Basel III the majority of junior subordinated bonds (so called Tier 1 and Upper Tier 2 bonds) will cease to qualify as bank capital
    By Brandon Davies

  • Securitization: Understanding the Risks and Rewards

    Best Practice

    In broad terms, securitization can be viewed as pooling receivables and selling claims to these receivables in capital markets. For example, a mortgage lender may pool together thousands of mortgages and sell claims on mortgage receivables to investors. Historically, the first securitizations
    By Tarun Sabarwal

  • Using the Market-Value Method for Acquisitions

    Checklists

    The capitalization of a publicly traded company is calculated simply by multiplying the market price per share by the number of shares in issue.

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Definitions of ’junior capital’ and meaning of ’junior capital’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’junior capital’ and other financial terms with our online QFINANCE Financial Dictionary.

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