The borrower is struggling, and the lender would rather take a partial loss now than deal with a default later.
Achieve "pull-to-par"—where you collect the full principal and interest over time, significantly boosting your effective yield. Option 2: Strategy-Focused (Investor Blog/Newsletter)
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It’s one of the few ways to find "mispriced" assets in a crowded market. Just make sure you’re comfortable with the credit risk!