Jul 30, 2023

Distressed debt as an individual investor

Incoming RX intern here curious if it’s feasible to invest in distressed debt as an individual investor. To me, the major barriers are the information disadvantage and lack of ability to purchase certain securities (I’ve found certain corporate bonds aren’t available except through a broker. Obviously not being able to buy certain securities is unfortunate, but my major concern is dealing with such a disadvantage that positive returns are impossible. I think it’d be valuable to invest in a distressed debt position ahead of next summer as the due diligence process would definitely give me a lot of insight into reorganization, so I’d be curious to hear if anyone has done this successfully.

7 Comments
 

You wouldn't be able to.

Additionally, even if you could. You definitely wouldn’t be making returns (your biggest worry) because you know nothing about the process.

 

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