Bad Paper
  
Bad paper is an unsecured (no collateral) short-term fixed income instrument (bond) that is issued either by a corporation, city, state, or country, that has a high probability of defaulting on its promissory notes. Bad paper equals junk bonds. Junk bonds are...risky.
Here's the deal: The entity issuing those bonds is trying to keep the metaphorical sinking ship afloat. The entity needs cash. Issuing the bonds produces the cash to the issuer promising to pay back the dough eventually. However, because of the entity's ill financial health, the bonds must be issued at a deep discount, and/or at a very high interest rate. A speculative investor might still buy the bad paper (again, junk bonds), because if the issuer can turn it around, the investment could bring significant profits and above-average interest payments to investors.
A good example: Puerto Rico bonds. For a long time, Puerto Rico bonds were viewed as losers, as the island was near default and hit hard by the hurricanes in the fall of 2017. However, recent headlines (from March 2018) state "Puerto Rico forecasts $6 billion surplus as bonds soar," reflecting the unexpected improvement in the island's economy, as well as hopes for Puerto Rico to resolve its continuing bankruptcy problems.
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![Finance: What are Misappropriation, misrepresentation, misogyny, and Miss independent?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.913_770x433.jpg)
Finance: What are Misappropriation, misr...0 Views
Finance allah shmoop what are misappropriation misrepresentation misogyny and miss
independent Yeah a misappropriation not a kelly clarkson song something
about attitude and misdemeanor maybe on no Alright well they
miss here is all about bad bad things people do
teo people while clothes generally first up miss appropriation well
when you appropriate something you take it And in the
highly regulated world of finance it had better be appropriate
that you appropriate that we did They're really clever So
the missus here are things you can't do like Thou
shalt not steal ee appropriate things without it being legal
right Okay moving on then there's mis representation thou shalt
not represent myself as being registered as a rap for
legal to trade derivatives Or that the fair commission really
wass for thousand dollars on that twenty five thousand dollar
trade right That's misrepresentation you have to represent yourself and
your interests honestly All right Well as to the other
mrs well misogyny and doesn't look good on your uncle
how they're so it probably won't look good on you
either So don't do it and then miss independent Yeah
that's the kelly clarkson songs you sing it girlfriend doesn't
kill you makes you stronger something or other Yeah she 00:01:34.679 --> [endTime] sings better way
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