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:
- Corporate Bonds
To learn more about this concept and become a master at bonds and fixed income, you should check out our Bond Course - Fixed Income (coming soon!).