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Glossary for Investors

Senior Debt

Senior Debt

Senior debt is the first level of a corporation’s liabilities which means it is paid out first, ahead of all other creditors. Senior debt is the safest form of financing for the party providing the funds. Should a corporation go bankrupt, any remaining funds, dissolved assets or other available sources of value must first repay senior debt before other creditors are able to collect.

For more on how senior debt figures into the broader picture of commercial real estate finance, please see our longer-form blog post on the capital stack.

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