Subordinated bonds
So you are ready to take more risk to earn more money…
Some aggressive investors might want to buy subordinated bonds, which carry higher coupons but expose you to higher risks. Both the coupons and the capital are at risk when things go bad, and it could happen that only senior bonds will be satisfied in a default or liquidation, while subordinated bonds suffer partial or full losses. Check out the story about Anna, who decides to take on more risk, after evaluating the long term solvency of the issuer – this is the key when you go sub!
Are you ready now to get over yourself with the skill and competence questionnaire? Click here
