Home > Glossary > Second Lien Debt

Meaning / Definition of

Second Lien Debt

Categories: Credit and Debt, Real Estate,

A debt that places its holders second in line in the case of bankruptcy or default. second lien debt holders receive compensation from property or other collateral after first lien debt is covered, making this type of loan a riskier investment. For example, a company issuing a homeowner a second mortgage will be able to claim assets only after the company issuing the first mortgage has completed its claim.

Featured term of the day

Definition / Meaning of

Stable Value Fund

Categories: Mutual Funds, Retirement and Pension,

1. An investment option typically offered in retirement plans by employers or IRAs that are composed of guaranteed investment contracts, fixed-income funds, or capital-preservation funds. This is a popular investment vehicle for individuals nearing retirement because of stable interest and principle payments on these contracts. The returns from a stable value fund are secure, but can be small compared to other investments. A stable value fund should not be the only investment vehicle in the portfolio of an individual who has a long time until retirement. 2. A type of mutual fund that is regulated by the Department of Labor instead of the securities and exchange commission, which typically oversees mutual funds. Stable value funds are similar to bond funds, but they have insurance against principal losses. Money invested in stable value fund is combined with other cash infusion and used to purchase secure contracts from banks or insurance companies. These contracts include a guaranteed regular rate of return over the course of the contract.

Most popular terms

1. Erection All Risks (EAR) Insurance
2. Act-as-one Provision
3. Corridor Self-insured Retention
4. Hacker
5. Direct Action
6. Insurer Insolvency Exclusion
7. Information Disclosure Statement (IDS)
8. Pension
9. Sell Short
10. Office Of Compliance Inspections And Examinations (OCIE)

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital