Non-Performance

My supervisor, explaining a deal to me:

“So these guys are trying to sell off an NPL portfolio.”

“What’s NPL?” (momentarily baffled because my first association with NPL is to something else)

“Non-performing loans. They acquired these NPLs and now they’re trying to sell them off, but they’re taking a loss because the yield has been low.”

“Low relative even to expectations at the time when they were acquired?”

“Yes. They’re non-performing non-performing loans.”