Hedge Fund Glossary

mfa-logo latham-and-watkins-logo

Lien Subordination

the Subordination of second lien debt to first lien debt. Here, both Tranches of debt may be Pari Passu in terms of payments, and secured by the exact same Collateral, but the second lien is Subordinated because its beneficiaries agree that in the case of the receipt of any proceeds of sales of that Collateral in a Bankruptcy, the first lien Lenders will be paid prior to any payouts on the second lien debt. See Subordination.

Hedge Fund Glossary Index ›

Latham & Watkins is pleased to provide our Book of Jargon® — Hedge Funds. The Book of Jargon® — Hedge Funds
is a comprehensive glossary of hedge fund slang, legal and regulatory terminology, and acronyms.

For more information please visit: www.lw.com