Perpetual subordinated loans and notes are never redeemable and thus continue to pay Interest as long as the borrower remains solvent (see Solvency). They have no Duration because there is no contractual undertaking for repayment, which may take place when the issuer so wishes. If the issuer is liquidated, noteholders rank for repayment after other creditors (as they are subordinated debts) but before Shareholders. Perpetual subordinated loans and notes are also called Perpetuals.

(See Chapter 7 How to cope with the most complex points in financial accounts of the Vernimmen)

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