In the context of the 2007-2009 recession, the term refers to assets like mortgage backed securities and collateralized debt obligations that are illiquid and difficult to value. If the value of the u [..]

debts that a lender, such as a bank or a mortgage company, is unlikely to be able to recover because the person or company that borrowed the money cannot afford to pay it backPutting $700 bn of taxpay [..]

A generic term for assets that expose their holders to losses that are very large and difficult to quantify. They include mortgage backed securities (MBS), collateralized debt obligations and credit default swaps. Repayment difficulties encountered by large numbers of U.S. holders of subprime mortgages led in 2007 and 2008 to large losses by banks [..]

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 asse [..]

An asset that becomes illiquid when its secondary market disappears. Toxic assets can’t be sold because they’re often guaranteed to lose money. The term “toxic asset” was coined in the financial crisis of 2008/09, in regard to mortgage-backed securities, collateralized debt obligations and credit default swaps, all of which couldn’t be sold after t [..]

In the context of the 2007-2009 recession, the term refers to assets like mortgage backed securities and collateralized debt obligations that are illiquid and difficult to value. If the value of the u [..]