Refer to the definition of subordinated financial support. Subordinated financial support is the variable interest(s) that absorb some or all of a legal entity’s expected losses. Thus, this analysis is a quantitative analysis that compares the subordinated financial support provided by the company (at fair value) to the total subordinated financial support provided to the legal entity by all variable interest holders (at fair value).
Subordinated financial support typically includes equity investments and subordinated debt. The analysis, however, should look at all funding commitments to the legal entity.