Claim Dilution

Claim Dilution - a claim dilution is a decrease in the likelihood that one or more parties in a contract will be repaid in full.  A dilution is a change on earnings per share of a stock, and a claim dilution may occur if the following happens. A company adds additional claims, to a pool of assets (such as mortgages), without adding more assets... The result of adding more claims, to the pool of assets, and not adding more assets, will result in a claim dilution, decreasing the likeliness that one or more contact holders will get paid in full.