toxic assets

Definition

Assets that have significantly declined in value, which no one will no longer buy. After the subprime mortgage crisis in the late 2000s, many of these mortgages became considered toxic assets. In this specific situation, the government has intervened by creating the Public-Private Investment Program, which is going to purchase back a significant portion of these toxic assets.

Use toxic assets in a sentence

They were toxic assets and that meant no one would no longer buy them and they would wither away into nothing.

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Greek Bonds are now considered toxic assets with many investors avoiding them entirely similar to mortgage backed securities during the sub-prime crisis.

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The government has implemented programs to buy back toxic assets in the hopes the economy will rebound and these assets will one day become profitable again.

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