Distressed Security

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 ?
Despite the difficult macroeconomic context of Lebanon's distressed security and economic environment, the latest available data on insurance premiums are mostly in positive territory.
Right now, Wall Street funds are inhaling a host of new distressed security concoctions (a k a toxic assets part II) that scoop up all the junk out there and regift it to the markets.
Siguler Guff offers fund of funds targeting distressed security investing.