For those who read the indispensable Securities Analysis by Graham and Dodd (dated, but conceptually a must-read), one of the things they insist upon for credit is that the borrower be able to safely satisfy ALL their debts, not just at the seniority level you are investing at. This is because safety comes from the borrower’s earnings power, not from seniority, which mainly is of benefit in bankruptcy. Which leads to delays, opportunity cost, and often more damage to the business or assets available for liquidation.