The subordinated debt acts like equity of the company, and a decrease in the volatility of the company's assets would increase the expected return on equity.

The subordinated debt acts like equity of the company, and an increase in the volatility of the company's assets would increase the expected return on equity.

The subordinated debt acts like callable debt of the company, and a decrease in the volatility of the company's assets would increase the expected return on callable debt.

The subordinated debt acts like callable debt of the company, and an increase in the volatility of the company's assets would increase the expected return on callable debt.