What do you mean by priority, subordination and equity level among securities holders?

Graded products are divided into two or more types of shares, and different income distribution is given respectively. That is to say, under a portfolio, two or more levels of risk returns are formed through the decomposition of product returns or net assets, and the performance has a certain differentiated product share. That is, the priority and secondary in the above picture.

In order to meet the different needs of investors, investors with fixed income and low risk tolerance often have an agreed rate of return; Secondary investors are those who expect to increase investment capital through financing, and then obtain excess returns, and have a higher risk-return preference. However, in the classified products of securities firms, due to the extremely high risk of subprime loans, investors are generally securities companies themselves or institutional investors, so as to assume the responsibility of giving priority to compensation.

Equity level is a normal equity investment with no additional conditions, and the risk is higher than priority and secondary.