Capital Loss Coverage Ratio

  

Hmmm...sounds like a ratio used by the party in power to describe the expected losses they’re facing on Capitol Hill the next election cycle...but we’re referring to a finance term here, not the current soap opera we call American politics.

Capital loss coverage ratio is actually a ratio to describe the difference between the current book value of a failing company’s current assets and the amount received from the sale of those non-performing junk funds that must be liquidated...because the XYZ Trump Tariff Fund turned out to be not such a good investment for the company after all.

Interested in buying these assets on the cheap? Well, they’re all yours. And if you’re willing, of course, to accept the value “as is,” you’ll get assistance from an esteemed regulatory body, but there’s no guarantee of the future value or performance of these funds.

Wow. Can’t wait to take advantage of this deal.

Find other enlightening terms in Shmoop Finance Genius Bar(f)