PIBS become perpetual subordinated bonds if their issuer demutualises.

The two first started talking about doing business together in April 1987, when Mitsubishi provided Chicago Research with $37 million in capital by purchasing subordinated bonds.

A particularly important example of subordinated bonds can be found in bonds issued by banks.

Until now, he said, the company's subordinated bonds have been held by non-investment-grade buyers.

The main examples of subordinated bonds can be found in bonds issued by banks, and asset-backed securities.

That in turn was paid off by an issue of subordinated high-yield bonds with a 14 1/2 percent coupon due in 1996.

While analysts do not expect that holders of senior debt will lose their money, the subordinated bonds now sell for about 25 cents on the dollar.

EUR 120 million convertible subordinated bonds issued to fund further expansion.

Erie Tobacco, $236 million of senior bonds and $44 million of subordinated bonds.

And recently when Yamaichi floated 40 billion yen of subordinated bonds to maintain its capital requirements, Fuji was not a buyer.