Senior Securities 

Bonds and other debt obligations, fixed-rate capital securities and preferred stock that are considered senior to common stock within an entity?s capitalization structure.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.