Bad Paper

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.

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.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • bad paper — n. bad checks; a bad check. □ She got six months for passing bad paper. □ There is more bad paper passed in this town in one month than in all of Sweden for a whole year! …   Dictionary of American slang and colloquial expressions

  • bad paper — {n.}, {slang} 1. A check for which there are no funds in the bank. 2. Counterfeit paper money. * /Why are you so mad? I was paid with some bad paper./ …   Dictionary of American idioms

  • bad paper — {n.}, {slang} 1. A check for which there are no funds in the bank. 2. Counterfeit paper money. * /Why are you so mad? I was paid with some bad paper./ …   Dictionary of American idioms

  • bad\ paper — noun slang 1. A check for which there are no funds in the bank. 2. Counterfeit paper money. Why are you so mad? I was paid with some bad paper …   Словарь американских идиом

  • bad paper — Slang. a less than honorable discharge from military service. * * * …   Universalium

  • bad paper —  Worthless money or checks …   American business jargon

  • bad paper — Slang. a less than honorable discharge from military service …   Useful english dictionary

  • Bad Dürkheim — Bad Dürkheim …   Wikipedia

  • Paper Lions — Background information Origin Belfast, Prince Edward Island, Canada Genres …   Wikipedia

  • paper hanger — A slang expression for someone who writes bad checks. Category: Criminal Law Category: Small Claims Court & Lawsuits Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009 …   Law dictionary

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