Unique Diversification Benefit

(redirected from Unique Diversification Benefits)

Unique Diversification Benefit

Reduction in the likelihood of financial distress for a conglomerate firm that comes with its diversified investments.

Unique Diversification Benefit

The reduction in the likelihood of financial difficulties that occurs when a person or company diversifies his/her/its investments. The downside to the unique diversification benefit, however, is the fact that it generally reduces the expected return.
References in periodicals archive ?
Among those that may offer attractive risk and return profiles - as well as unique diversification benefits - are mortgage servicing rights (MSRs), non-performing loans (NPLs) in the residential mortgage market and synthetic residential mortgage-backed securities (RMBSs).