What does senior secured mean?

October 27, 2026

Senior secured describes a loan's place in line and its backing. Senior means it's repaid before other debts. Secured means it's backed by collateral, here the real estate itself.

Why it matters

CREB's loans hold a first-position lien on the property. If a borrower stops paying, the lender can enforce the lien and recover money from the property, ahead of junior lenders and the owner. Lending at conservative loan-to-value ratios leaves a cushion of borrower equity if the property's value falls.

An important distinction

The loans CREB makes are senior secured. The CREB bonds you hold are unsecured obligations of the issuer, not backed by specific pledged assets. See is my investment secured.

CREB bonds are investments, not bank deposits. They are not FDIC insured, and you could lose money, including principal.

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