A form of debt in which the repayment order is superior to the company's equity but lower than the company's general debt. The "sub-prime" in the sub-prime debt is completely different from the "sub-prime loan" in the five-level classification of bank loans (normal, concerned, sub-prime, doubtful and loss).

The "subordinated" in subordinated bonds only refers to the "subordinated" of its creditor's rights, which does not mean that its credit rating must be "subordinated"; The "subprime" in the five-level classification is classified as non-performing loans together with "doubtful" and "loss".

Extended data:

A securities company shall meet the following conditions when borrowing or issuing subordinated debt:

(1) The borrowed or raised funds are used reasonably.

(2) Subordinated debt should be borrowed or integrated in cash or other forms recognized by China Securities Regulatory Commission.

(3) The amount of subordinated debt borrowed or issued shall meet the following requirements:

1. The amount of long-term subordinated debt included in the net capital shall not exceed 50% of the net capital (excluding the accumulated amount of long-term subordinated debt);

2. Risk control indicators such as the ratio of net capital to liabilities and the ratio of net assets to liabilities did not touch the early warning standard.

(4) The contents of the prospectus or the terms of the subordinated debt contract meet the regulatory requirements of the securities company.

Baidu Encyclopedia-Provisions on the Administration of Subordinated Debt of Securities Companies