Will Subordinated Debentures help or hurt a company that issued them and sold them also ??

Mtg issued these and raised millions of dollars when they were issued.

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ThaDRAGN answered a question in Accounting.
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ThaDRAGN answered one year ago …

Subordinated debt just means that the lenders get paid last if the company shuts down and has to liquidate. So it doesn't hurt the company...what will hurt the company more is borrowing when they're desperate for cash and have to pay interest rates or meet debt clauses that force them to do stupid things. If you didn't invest in any of the companies that had "too much" debt during the last bubble, you would've missed on all the big debacles (Enron, K-mart, etc.).

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