A debt that is both senior (senior debt) and unsecured (unsecured debt). As a senior debt, it takes priority over other classes of debt such as unsecured or “junior” debt owed by the issuer. Senior debt has an advanced seniority in the issuer’s capital structure than subordinated debt, and also it has priority for payment in case of liquidation. In the event the issuer goes bankrupt and therefore is unable to pay off its obligations, i.e., the debt amount and interest, senior debt has a prioritized right to be repaid before other types of debt receive any payment.

Unsecured senior debt is not guaranteed by collateral from which the lender can redeem the debt along with any dues. Rather it is backed and issued based on the borrower’s (issuer’s) creditworthiness.

The most common type of unsecured senior debt is bonds (though certain types of bonds are secured by collateral, in which case are not classified as unsecured senior debt).