When a company or government struggles to meet its financial obligations, its bonds or loans may trade at steep discounts—this is distressed debt. Investors buy it hoping for a turnaround or restructuring, potentially earning high returns. Hedge funds and specialized firms often benefit, along with creditors who negotiate better terms.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends