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

Going away

The type of bond purchased by dealers for immediate resale to investors, as opposed to purchasing a bond to hold for some amount of time, and then reselling it at a future date.

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