What is senior debt?
The first mortgage loan secured by the property. It has the highest payment priority and the strongest collateral position (a first-priority lien), and therefore usually carries the lowest required return in the capital stack.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.