Granular Portfolio   DEFINITION of 'Granular Portfolio'  A type
of portfolio that is well diversified across a wide variety of
areas, typically with a significant number of holdings. Because
these portfolios contain a large number of positions over many
areas, they are considered to have a lower overall risk profile.
Conversely, portfolios that have "low granularity" have fewer
positions or contain highly correlated assets, are less
diversified and have a higher overall risk profile.   This term
is typically applied to credit portfolios, but it can also be
used when analyzing currency, equity and bond portfolios. Highly
granular portfolios, sometimes referred to as infinitely
granular, diversify most of the unsystematic risk (individual
security risk) out of the portfolio so that the overall
portfolio only faces systemic risk, which can't be easily
diversified away. Highly granular portfolios tend to garner
their income from a number of projects and/or sources, while
less granular portfolios depend on a fewer