Does anyone know anything about investing in secured subordinated notes?

Question

Anything unsecured sounds risky.

Answer 1

Yes, "subordinated debt (also known as subordinated loan, subordinated bond, subordinated debenture or junior debt) is debt which ranks after other debts should a company fall into receivership or be closed."

http://en.wikipedia.org/wiki/Subordinate...

It depends how subordinated the notes are - where they rank verses other subordinated debt.

This has been a tough area over the last year or so due to investors running away from investing in corporate debt, even if it has some protection backed by assets.