Troubled assets

Definition:

In context of the Troubled Asset Relief Program, the term “troubled asset” is defined as:
(A) Mortgages, mortgage backed securities, and instruments derived from these that were originated on or before March 14, 2008, and
(B) Any other financial instrument the purchase of which is necessary to promote financial market stability.

Investing Essentials


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

Term of the Day

Mortgage bond

A bond in which the issuer has granted the bondholders a lien against the pledged assets. See: Collateral trust bonds

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