Distressed Investment

Distressed investment involves buying securities or assets of companies that are facing significant financial trouble, such as bankruptcy or severe cash flow problems. Investors in this space believe these assets are undervalued and have the potential for high returns if the company recovers or its assets are restructured. It requires careful analysis of the company's situation, legal risks, and potential outcomes. These investments are often high risk but can offer substantial rewards if the distressed company successfully turns around or its assets are sold at a profit.