Unsecured debt
Debt that does not identify specific assets that can be taken over by the debtholder in case of default. |
Similar financial terms
DebtorsAmounts owing to the company, including the value of sales made under credit, where settlement or payment from the customer is still awaited.
Unfunded debt
Debt maturing within one year (short-term debt).
Trade debt
Accounts payable.
Total debt to equity ratio
A capitalization ratio comparing current liabilities plus long-term debt to shareholders' equity.
Subordinated debt
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.
Structured debt
Debt that has been customized for the buyer, often by incorporating unusual options.
Senior debt
Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment.
Secured debt
Debt that, in the event of default, has first claim on specified assets.
Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.
Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.
Debt bomb
A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system.
Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.
