Asset-Light Debt
Like asset debt, but with fewer calories. Actually, it's a type of corporate borrowing where the money received gets secured with less collateral than usual. The debt is light on assets, as it were.
These types of debt structures were popular in the wild days of corporate finance during the mid-2000s. However, they lost luster with lenders and investors amid the financial crisis of 2007/2008 which almost ended the free world as we know it. Here's to calories.
Related or Semi-related Video
Finance: What are Junior and Senior Debt...7 Views
Finance a la shmoop what are senior and junior debt? or like what's the
difference between them well what are they they're debt in a bankruptcy senior
debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]
jungle remember the debt stack? vendors to the
company collect first then employees then the IRS of course because while
they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]
then come senior bonds then come junior then come unsecured bonds also known as
debentures then subordinated debenture like debentures below debentures and
there are all kinds of granular things in the bonds above we're very sorry if
one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]
the stack then there's preferred stock which collects after the most
subordinated debentures collect generally and then finally there's
common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]
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