Troubled Asset Relief Program (TARP)

Definition:

A $700 billion fund created in response to the credit crunch that hit the US in 2008. The original intent of the fund was to allow the Treasury to buy illiquid mortgage-related assets. The fund was ultimately used to provide direct capital infusions to distressed financial institutions.

Investing Essentials


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

Term of the Day

Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

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