What is the so-called Deep State? Here's what you need to know about an obscure term making the rounds in the White House President Trump's Allies Keep Talking About the 'Deep State.'
The investors who take the least risk are paid first. For example, secured creditors take less risk because the credit that they extend is usually backed by collateral, such as a mortgage or other assets of the company. They know they will get paid first if the company declares bankruptcy. Secured Creditors-often a bank, is paid first. 2  Unsecured Creditors-such as banks, suppliers, and bondholders, have the next claim. 3  Stockholders-owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.
But if the company runs. into financial difficulties, it still has a legal obligation to. make timely payments of interest and principal. the. company has no similar obligation to pay dividends to. shareholders. In a bankruptcy, bond investors have priority. over shareholders in claims on the companyâs assets. like all investments, bonds carry risks. one key risk to a. bondholder is that the company may fail to make timely. payments of interest or principal. If that happens, the. company will default on its bonds.