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Second Lien: secured debt but only with a call on the assets of the borrower which is ranked behind that of more senior secured debt. A second lien lender will have to agree to subordinate its claims on any assets to those of the first lien lenders.

Secondary Market: the market in which bonds or shares trade once they have been issued. Seeprimary market.

Securities: documents demonstrating rights either to corporate share capital (e.g. share certificates) or to government or corporate debt (e.g. bonds, debentures, etc.)

Securitisation: the packaging of debt or other receivables into the form of a tradable security.

Senior Debt: debt which has priority over other debt and equity in the event of the borrower running into financial difficulties or facing liquidation of ’its assets. Senior debt is usually secured against the borrower’s assets and will have first call on them.

SPV: a Special Purpose Vehicle is an entity created solely for a particular financial transaction or series of transactions. It may sometimes be something other than a company, such as a trust. SPVs are often used to make a transaction tax efficient by choosing the most favourable tax residence for the vehicle.

Subordinated Debt: debt which is issued on terms which stipulate that it will only be repaid once the claims of more senior creditors have been satisfied. As opposed to senior debt.

Surety: used in the TIOPA10 definition of guarantee; where the pledge or guarantee forms part of the contract being secured, not a separate agreement. Something (or someone) standing as guarantee.

Syndicated Loan: a loan issued by a group of lenders, usually banks or financial institutions, arranged and administered by one bank which acts as “arranger”. Designed to spread the risk on large loans between a number of lenders.