Asset-Light Debt

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Dictionary Says

Definition of 'Asset-Light Debt'

A corporate debt that has less than the usual amount of collateral, which is normally 30% or more of the company's value. With asset-light debt, that number is much lower, with many companies' collateralized debt percentage falling far below the previous standards. It can sometimes even be at zero.
Investopedia Says

Investopedia explains 'Asset-Light Debt'

A company may use this strategy by creating a a holding company. The company would then use the holding company to issue debt and pay off the debt through dividends from the original company. 
Search results for

'Asset-Light Debt'

  • Weight Watchers – Yo-Yo Performance And Debt Gluttony

    http://stocks.investopedia.com/stock-analysis/2012/Weight-Watchers--Yo-Yo-Performance-And-Debt-Gluttony-WTW-NTRI-MED-ABT0216.aspx
    ... the company intends to fund this largesse with still more debt. This should be a
    controversial move. I get that Weight Watchers has an asset-light model that ...

  • 2011 Look At Homebuilders

    http://stocks.investopedia.com/stock-analysis/2011/2011-Look-At-Homebuilders-DHI-KBH-HOV-NVR-XHB-LOW-HD1220.aspx
    ... Yet, unlike its peers, NVR has been a relatively steady stock throughout the entire
    housing crisis, due to its asset-light and debt-free balance sheet. ...

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