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Claim Dilution |
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Claim dilution A decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations. Claim Dilution A situation in which it becomes less likely that a party to a loan, security, or other contract will be paid in full as agreed. It can occur in mortgage-backed securities, for example, if more securities are issued without a proportionate number of new mortgages being bought and incorporated into the security. See also: Anti-dilution provision. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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