distressed investing

Distressed investing involves purchasing financial assets, like stocks or bonds, from companies or entities that are in financial trouble, such as bankruptcy or severe debt. Investors aim to buy these assets at a low price, anticipating that the company will recover or restructure, leading to higher future values. This strategy can be risky, as not all distressed companies will successfully turn around, but it also offers the potential for significant returns if they do. Essentially, distressed investing is about finding value where others see only problems.