Stick Sandwich
A stick sandwich is a financial term used to describe a situation in which a company has a large amount of debt that is secured by a single asset. This asset is usually a piece of real estate, such as a building or a piece of land. The company is then unable to pay off the debt, and the lender is left with the asset as collateral. This situation is often referred to as a “stick sandwich” because the lender is stuck with the asset and the company is stuck with the debt.
History of the Term
The term “stick sandwich” was first used in the early 1980s by real estate investors to describe a situation in which a company had a large amount of debt secured by a single asset. The term was used to describe the situation in which the company was unable to pay off the debt and the lender was left with the asset as collateral. The term has since become a popular phrase in the financial world, and is often used to describe a situation in which a company is unable to pay off its debt.
Comparison Table
| Situation | Debt | Asset |
|---|---|---|
| Stick Sandwich | Large Amount | Single Asset |
Summary
A stick sandwich is a financial term used to describe a situation in which a company has a large amount of debt that is secured by a single asset. This asset is usually a piece of real estate, such as a building or a piece of land. The company is then unable to pay off the debt, and the lender is left with the asset as collateral. This situation is often referred to as a “stick sandwich” because the lender is stuck with the asset and the company is stuck with the debt. For more information about this term, you can visit websites such as Investopedia, The Balance, and Bankrate.
See Also
- Debt-to-Equity Ratio
- Leverage Ratio
- Debt Service Coverage Ratio
- Debt Restructuring
- Debt Consolidation
- Debt Refinancing
- Debt Forgiveness
- Debt Buyback
- Debt-to-Income Ratio
- Debt-to-Asset Ratio
