Distressed Debt

Commonly used to describe loans, bonds other debt instruments or contracts that are issued by a borrower that has a high risk of not being able to service its existing interest or repayment obligations. Distressed loans for example would normally trade at a significant discount to ‘par’. This can present an interesting investment opportunity for those who believe that the performance of a company will improve or the liquidation value of a company exceeds the price at which the loan or debt security is available to be purchased.

Investing in wiseAlpha Notes involves risks including potential illiquidity and loss of investment. Our Notes are not deposit based or capital protected and are not covered by the Financial Services Compensation Scheme.The interest rate on our products is not comparable to that of a bank savings account. See Risk Statement.

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