distressed asset

A distressed asset is a financial term that refers to a property, investment, or company that is experiencing significant financial difficulties, often leading to a decline in its value. These assets are usually underperforming due to factors like poor management, market conditions, or economic downturns. Investors often buy distressed assets at a lower price, hoping to turn them around for a profit. While investing in these assets can be risky, it can also offer opportunities for substantial returns if the situation is successfully managed and improved.