Debt Type classifies a debt allocation into its specific instrument and position in the capital structure. Common debt types include Senior Secured (first lien, lowest risk), Mezzanine (subordinated, higher rate), Venture Debt (growth-stage loans), Private Debt (non-bank direct lending), and Distressed Debt (debt of financially stressed companies).
Debt Type is the debt-specific counterpart to Equity Type and helps users understand both the risk profile and the structural seniority of a debt investment. Senior secured debt is repaid first in a default scenario; mezzanine and subordinated debt carry higher yields to compensate for lower priority in the repayment waterfall.