At A Discount | Buying Loans

Buying loans at a discount—often referred to as purchasing "distressed debt" or secondary market notes—allows investors to acquire debt for less than its face value. This can occur when a lender wants to liquidate their position quickly or when a borrower’s financial situation has worsened.

Because you bought the debt for "pennies on the dollar," any recovery toward the full principal represents pure profit. buying loans at a discount

Interest rates have risen, making older, lower-rate loans less attractive at "par" value. Buying loans at a discount—often referred to as