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Definition of 'Bad Paper'
Unsecured short-term fixed income instrument that is issued either by a corporation, city, state or country, that has a high probability of defaulting on their promissory notes. Since bad paper is not backed by collateral, it is sold at a discount to the equivalent collateral-backed fixed-income securities. However, in contrast to regular commercial paper which typically has a strong rating from a credit agency, bad paper does not possess this quality.
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Investopedia explains 'Bad Paper'
Bad paper is risky. Not only is it not backed by collateral, it is also issued by an entity that could potentially fail to meets its obligations. Bad-paper investors take on high levels of risk and, as a result, would be offered an attractive interest rate as proper compensation.
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Search results for 'Bad Paper'
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http://financialedge.investopedia.com/financial-edge/0112/Is-A-Bad-Reputation-A-Bad-Investment.aspx
... (For more on how bad public image can affect a company, read Does Bad PR Make ... of
opening a factory in a poor country, printing its catalogs on paper from old ...
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http://www.investopedia.com/articles/bonds/08/commercial-paper.asp
... It would be seen as bad business if a large, well-known bank let ... ABCP is commercial
paper, but it has characteristics that, under certain market conditions ...
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http://www.investopedia.com/articles/economics/09/money-market-reserve-fund-meltdown.asp
... Even funds that were unaffected by bad commercial paper (remember, Lehman and AIG
were the tip of the iceberg) faced the possibility of mass redemption ...
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http://financialedge.investopedia.com/financial-edge/0811/How-To-Build-A-Stockpile-To-Save-Money.aspx
... couple of cabinets or a portion of a closet. For items that will never
go bad, like paper towels, under the bed will do nicely. ...
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http://stocks.investopedia.com/stock-analysis/2008/2008s-Terrible-IPOs-Verso-Paper-And-Safe-Bulkers-VRS-SB1024.aspx
... 2008's Terrible IPOs: Verso Paper And Safe Bulkers. ... Name. Offer Date. Offer Price.
Current Price. Decline. Verso Paper (NYSE:VRS). May 14/08. $12.00. $1.96. 83.7 ...
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http://stocks.investopedia.com/stock-analysis/2009/Paper-Stocks-Cut-Crumpled-Torn-And-Shredded-IP-MWV-WY0114.aspx
... value investors to ignore a bad short-term trend for an assumed long-term improvement.
But there are serious secular forces pressing down on the paper industry ...
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http://www.investopedia.com/articles/pf/08/bad-investment-advice.asp
... Inappropriate Leverage Using borrowed money to invest in stocks always looks good
on paper. ... volatility, which is good if the investment goes up, but bad if it ...
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http://www.investopedia.com/articles/professionaleducation/08/ace-business-courses.asp
... the professor provides suggestions, and you make the changes, it's hard for the
professor to give you a bad grade because in effect, the paper has already been ...
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http://www.investopedia.com/articles/analyst/073002.asp
... Better Stocks By Consulting Form 10-K.) In Plain English The bad thing about ... because
they are long and because brokerage houses want to save paper (thus the ...
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http://www.investopedia.com/articles/basics/09/understanding-bailout-acronyms.asp
... use a special purpose vehicle (SPV) to buy and hold these commercial paper to maturity
and ... Program, rolled out in March 2009, was created to buy bad assets in ...
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