Senior (unsubordinated) bonds
Would you like to be the first or the last in the line to get your money back?
Not all bonds are the same. Some bonds (senior) have a sort of priority compared to others (subordinated), and this is important when things go bad for the issuer of the bond. In fact, senior bonds are less risky and are paid back first in the event of default or liquidation, while usually little or nothing is left for subordinated bondholders. In turn, senior bonds will bear a lower coupon: listen to the story about Carlo, who invests in the wrong company, but was lucky enough to buy senior bonds.
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