When investing in a company’s debt, you have choices to make based on the company’s capital structure and your goals. For instance, an example in Alternative Investments presents a company with a capital structure made up of term loans and bonds.
What are the different types of debt investing?
There are two types of debt investing: private and distressed. If you’re new to debt investing, understanding each type is important, as they require different skills, knowledge, and strategies.
What is a debt investment?
The premise of debt investment is that the borrower pays back the balance, plus interest, over time. From fixed-income assets to loans, here are some of the most popular options of debt investment. Bonds. Investors pay market value to the issuer of the bond in exchange for guaranteed repayment and scheduled payments.
