Underperforming Asset

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underperforming asset

An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset.

An asset that is not generating an expected or necessary return. While the asset may produce income for the company or person possessing it, the income may not be sufficient and is certainly less than expected. Examples of underperforming assets include loans in which payments are irregular or products that have been inefficiently marketed. Companies with underperforming assets are often candidates for both hostile and friendly takeovers. See also: Nonperforming asset.

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Underlying Investment
underlying mortgage
Underlying security
Undermargined
Undermargined Account
Underpayment Penalty
Underperform
Underperforming Asset
underpricing
undersecured loan
Undersubscribed
Undervaluation
undervalued
Undervalued Company
Undervalued security

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