What Was an Asset Management and Disposition Agreement (AMDA)? An asset management and disposition agreement (AMDA) was a type of contract between the Federal Deposit Insurance Corp. (FDIC) and an independent contractor that oversaw and sold the assets of failed savings and loan (S&L) institutions during the S&L crisis of the 1980s and 1990s. Asset
What Is Asset Mix? The asset mix is the breakdown of all assets within a fund or portfolio. Broadly, assets can be assigned to one of the core asset classes: stocks, bonds, cash, and real estate. Within that, assets can be mixed even further. An asset mix breakdown helps investors understand the composition of a
What Is an Asset Protection Trust (APT)? An asset protection trust (APT) is a trust vehicle that holds an individual’s assets with the purpose of shielding them from creditors. Asset protection trusts offer the strongest protection you can find from creditors, lawsuits, or any judgments against your estate. An APT can even help deter costly
What Is Asset Rationalization? Asset rationalization is the process of reorganizing a company’s resources of economic value to improve operating efficiencies and boost its bottom line. Asset rationalization may involve many activities, including sales or divestitures of certain assets, closures of some facilities and expansion of others, and streamlining of manufacturing or other operations. In the majority
What Is Asset Redeployment? Asset redeployment is the strategic reallocation of assets from a less profitable use to a more profitable use. When companies redeploy assets, they take idle or underutilized capital and change how this capital is used in order to increase profitability. A proper asset redeployment strategy can allow a firm to achieve
In accounting, an asset retirement obligation (ARO) describes a legal obligation associated with the retirement of a tangible, long-lived asset, where a company will be responsible for removing equipment or cleaning up hazardous materials at some future date. AROs should be included in a company’s financial statement to present a more accurate and holistic snapshot
What Is Asset Specificity? In economics, asset specificity is the degree to which a thing of value, or even a person of value, can be readily adapted for other purposes. A thing with high specificity is useful only for certain tasks or in certain circumstances. An asset with low specificity is a more flexible resource
What Is Asset Stripping? Asset stripping is the process of buying an undervalued company with the intent of selling off its assets to generate a profit for shareholders. The individual assets of the company, such as its equipment, real estate, brands, or intellectual property, may be more valuable than the company as a whole due
What Are Assets Under Administration (AUA)? Assets under administration (AUA) is a measure of the total assets for which a financial institution provides administrative services and charges a fee for doing so. Assets under administration are beneficially owned and managed by clients who contract with a third-party administration provider. AUA differs from assets under management (AUM)
What Is an Asset Swap? An asset swap is similar in structure to a plain vanilla swap with the key difference being the underlying of the swap contract. Rather than regular fixed and floating loan interest rates being swapped, fixed and floating assets are being exchanged. All swaps are derivative contracts through which two parties exchange financial
