Knowledge Base
Why would anyone buy a bankruptcy claim?
Bankruptcy claims trading is a flexible investment strategy. One of the primary reasons individuals and institutions invest in bankruptcy claims is to make money by buying claims at lower prices, thinking they'll get more money back when the bankrupt person's assets are sold or the case ends. Some do it because they're predict that the assets or the bankrupt organization's financial situation will get better in the future, leading to a bigger payout. It's also a way to add variety to their investments, including distressed assets in their portfolio along with other investments.
