Ordinary senior bonds
When it is important to look at the distinctions about risks to preserve the capital invested.
We must make a distinction and understand how the senior bonds are very different from the subordinated bonds, so be very careful. The example shows the story of Carlo who inherited by an old aunt a sum of money and looks for the best and least risky way to get a good return. Carlo accepts a conservative suggestion for a less risky product regarding the capital who wants to invest and he chooses ordinary senior bonds, which have a very attractive coupon rate and which will prove to be the right choice to better manage the money received as a legacy, as explained in our Glossary with over 1200 exercises: Redooc, without running the risk to face a total or partial loss of capital.
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