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Distressed Debt Investing in Asia: Opportunities in a Volatile Market
In the past few years, Asia’s financial markets have faced economic turbulence, creating a landscape rich with distressed debt investment opportunities. As economic downturns lead to higher default rates, many institutional investors are exploring distressed assets, particularly across emerging markets in Asia. We will take a closer look at the potential benefits and risks involved in distressed debt investing in Asia, alongside current market data and trends observed through 2024.
What Is Distressed Debt Investing?
Distressed debt refers to debt from companies or governments struggling to meet their obligations, often trading at significant discounts due to perceived default risk. Investors in distressed debt seek to profit from the recovery of these assets, either through restructuring efforts or by reselling them at a higher price when markets stabilise. In Asia, where emerging economies are subject to geopolitical pressures, high inflation, and rising interest rates, distressed debt investment has grown increasingly attractive for those looking for potentially high returns.
Market Opportunities: Asia’s Distressed Debt Landscape
Market volatility has spurred an interest in distressed debt in Asia, and private debt funds in the region have grown…
