Distressed Security


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Distressed Security

A security in an unprofitable company, or in a company believed to be unprofitable. This is considered to be a high-risk security with the potential for high return because financial distress often precedes corporate restructuring. This may make the company profitable very rapidly. On the other hand, the potential for default is very high.
References in periodicals archive ?
Littlejohn and Klein in 1996, the firm has grown to more than 25 private equity and distressed security investment and operating professionals.
Siguler Guff offers fund of funds targeting distressed security investing.
Throughout this book, he skillfully discusses distressed security investing theory and strategy, while presenting current examples in order to reveal how the landscape has changed in recent years.
The Company seeks to obtain such distressed security investment positions at significant discounts from the market value for comparable companies.
There is only one distressed security, ABFC 2002-SB1 B, which is rated 'CCC' by Fitch and comprises approximately 1.