Alt-A

Definition:

Short for Alternative-A paper. Alt-A are loans that are considered riskier than prime loans but less risky than subprime loans. Generally made to individuals with a good credit score but some aspect of the loan (e.g. limited documentation or high loan-to-value ratio) makes the loan riskier than prime. Also see A paper, No docs.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Tax-neutrality

Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio