Subordinated Debentures

They have an specific clause I case of the liquidation of the issuing institution, the subordinated debenture holders are put for last as creditors and as first with respect to the share holders.

This type of debentures only perceives profits when the issuing institution obtains benefits on its exercise. In case of losses, there doesn’t exist the obligation to pay interests to the investors.

International Debentures
They are issued outside the country of the borrower. The international emissions of debentures, from Europe for example, are usually classified as “Eurobonds” or as “foreign bonds”.

The Eurobonds are denominate in a different currency than that of the country in which they are issued. The American dollars, the English pounds, Japanese yens, French francs and the euro are the main currencies used in Eurobonds emissions.

They are place by private or public institutions that have the maximum possible classification, given by the rating agencies.

The international debentures are issued in a country by a foreign borrower, usually from a governmental institution of maximum solvency, in the local currency, and are sold totally on that country.

Actually, a terminology has been developed to make reference to these types of emissions, alluding to some topic of the country in which the funds are collected. This way, debentures or bonds issued in yens by Japanese institutions are denominated as “Samurai bonds”, those issued in Dutch currency as “Rembrandts”, those issued in American dollars as “Yankees”, the ones issued in English pounds are called “bulldog” and those in pesetas as “matador”, among others.

Beginner Money Investing Debentures with Warrants Indexed Debentures Subordinated Debentures