toxic debt

English

Noun

toxic debt (countable and uncountable, plural toxic debts)

1. (finance) Debt that is acquired through normal financial transactions which later proves to have little or no actual value.
   • 2005 February 15, Anthony Hilton, “Debt Game's Winners and Losers”, in Evening Standard‎^[1]:

     This means the providers of the funds are basically swapping good, solid cash for potentially toxic debt.

Related terms

• toxic asset