A security of a firm that has declared or is about to declare bankruptcy. In the context of hedge funds, a style of management that focuses on securities of companies that have declared bankruptcy and may be undergoing reorganization. Investment holdings can include bonds as well as stock in these firms.
Nearby TermsDisposable income Distress sale Distressed securities Distributed Distributing syndicate
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University