Esoteric Debt

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Dictionary Says

Definition of 'Esoteric Debt'

Complex debt instruments with structures and pricing that are known to relatively few participants. The structure may lead to seemingly attractive risk/return over other debt instruments when the instruments function properly, but can also lead to illiquidity and pricing problems when markets are disrupted. Auction rate securities are an example of an esoteric debt vehicle.
Investopedia Says

Investopedia explains 'Esoteric Debt'

Leading up to the Financial Crisis of 2008-2009, credit was flowing so freely that many companies were creating innovative and imaginative esoteric debt instruments to try to suit investor needs and make money. The result was many odd debt structures that fell apart when credit seized up and few people knew how they should be valued. While these complicated instruments may be more attractive than plain vanilla debt in good times, they can present immense problems when the credit markets tighten.
Search results for

'Esoteric Debt'

  • Alternative Ways To Invest In Debt

    http://www.investopedia.com/articles/basics/11/alternative-debt-investments.asp
    ... Yields are low, but guaranteed. Conclusion Investing in debt may seem like
    an esoteric idea, but it's really a common financial option. ...

  • Credit Crisis: Historical Crises | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis2.asp
    ... Previously esoteric securities such as collateralized debt obligations (CDO),
    structured investment vehicles (SIV) and credit default swaps (CDS) were at the ...

  • How Bond Market Pricing Works

    http://www.investopedia.com/articles/bonds/07/pricing_conventions.asp
    ... have evolved over time, and they sometimes seem as esoteric as the ... Agency Bonds:
    Debt issued by the government-sponsored enterprises (GSEs), including Fannie ...

  • Are Investing Seminars Worth It? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/Are-Investing-Seminars-Worth-It.aspx
    ... Bonds of many kinds (ie debt, meaning contractual obligations to pay a ... Finally, seminars
    which offer information about esoteric investments which may yield ...

  • What Health Insurance Covers - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/What-Health-Insurance-Covers.aspx
    ... challenge before it happens. They range from the esoteric to the surprising.
    Health club memberships, for instance. At least one ...

  • ETFs For A Low-Cost, Long-Term Portfolio

    http://stocks.investopedia.com/stock-analysis/2009/ETFs-For-A-Low-Cost-Long-Term-Portfolio-VTI-IGE-BND-VEA-VNQ1028.aspx
    ... the recent ETF boom cycle has led to the production of many esoteric and narrowly ...
    IN PICTURES: Digging Out Of Debt In 8 Steps Keeping It Simple The truth is ...

  • How The Sharpe Ratio Can Oversimplify Risk

    http://www.investopedia.com/articles/07/SharpeRatio.asp
    ... on such broad categories as real estate or private equity, or more esoteric areas
    like ... Think back to the LTCM collapse or the Russian debt crisis in the late ...

  • Bio-Reference Labs Posting Impressive Internal Growth

    http://stocks.investopedia.com/stock-analysis/2011/Bio-Reference-Labs-Posting-Impressive-Internal-Growth-BRLI-LH-DGX-MTOX-HMA-HCA0830.aspx
    ... in the past couple of years and the company has minimal debt levels. ... to personalized
    medicine and subsequent increases in genetic and related esoteric testing. ...

  • Variety A Bitter Spice For Investors

    http://www.investopedia.com/articles/pf/07/confusion.asp
    ... derivatives are notoriously complex and each constitutes its own esoteric world ...
    Referring to the collateralized debt obligation (CDO) market, the article points ...

  • Quest Diagnostics Opens Its Wallet One More Time

    http://stocks.investopedia.com/stock-analysis/2011/Quest-Diagnostics-Opens-Its-Wallet-One-More-Time-DGX-CRA-GE-NVS-LIFE-LH-ABT-TMO0322.aspx
    ... the days of companies paying 10 times sales for molecular or esoteric test technology ...
    cancer diagnostics would be a natural target, but how much debt does the ...

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