What Is A Distressed Asset?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

A distressed asset is one which is in major financial difficulty, usually either in default or close to default. This will have caused the asset to greatly devalue. Distressed assets can be a good opportunity to buy if the investor believes the difficulties can be overcome.

Some examples of assets that can become distressed are:

  • Debt
  • Corporate Bonds
  • Shares

Related Terms

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.