Toxic assets

Toxic assets are financial assets that have significantly lost value and are difficult to sell, often due to underlying issues like bad loans or failing investments. During financial crises, such assets can pose serious risks to banks and investors, as they can lead to significant losses. Essentially, toxic assets become liabilities that can drag down a company's financial health, contributing to economic instability. Identifying and managing these assets is crucial for restoring confidence in financial systems and the economy as a whole.