toxic debt

toxic debt (countable and uncountable, plural toxic debts)

1. (finance) Debt that is acquired through normal financial transactions which later proves to have little or no actual value.
   • 2005 February 15, Anthony Hilton, “Debt Game's Winners and Losers”, in Evening Standard‎:

     This means the providers of the funds are basically swapping good, solid cash for potentially toxic debt.

• toxic asset