Distressed Investing
Definition
What is Distressed Investing?
Investing in troubled companies or claims with the aim of profiting from recovery, restructuringA significant change to a company's debt, operations, ownership, or organisation intended to improve viability., or asset value.
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. buys debt at 30 kobo per naira of face valueThe principal amount stated on a bond and usually repaid at maturity..
Keep learning
Related Terms
Royalty Company
A company that finances producers in exchange for a percentage of revenue or output.
Alternative InvestmentsStreaming Agreement
A financing arrangement granting the investor the right to buy part of future production at a predetermined price.
Alternative InvestmentsPrivate Credit
Non-bank lending to privately held companies or assets.
Structured ProductsStructured Product
An investment combining debt and derivatives to create a defined payoff.